Guinness owner Diageo has revealed alcohol sales of its top sellers like Dublin's black stuff soared last year when lockdown ended.
The company disclosed yesterday in its end-of-year report that booze sales increased massively as soon as pubs reopened after Covid restrictions eased.
Overall alcohol sales figures jumped by 49% in the second half of last year and Guinness sales shot up even more during the six months to the end of 2021, compared with the same period in 2020.
Net sales of the black stuff grew by over 76%, according to the newly published figures in Diageo’s latest half-year statement.
The report said: “Beer net sales grew 44%, driven by a strong increase in Guinness as on-trade restrictions eased in Ireland and Great Britain.”
Across the board, Diageo’s sales of spirits were up 17%, pre-mixed drinks were up by 25%, whilst specific increases included sales of Guinness rising by 42%, Baileys up 16% with Smirnoff seein an increase of 26%.
Diageo’s financial report “2022 Interim Results, half year ended 31 December 2021” doesn’t have a month-by-month breakdown for the final six months of 2021.
But analysts accept that the figures for Ireland are affected by Covid-19 restrictions.
At various stages, large outdoor events like music concerts and festivals were not allowed, sports fixtures and indoor entertainment in gig and theatre halls ran at 50 per cent capacity, and parties for Communions, Confirmations, and weddings were curtailed.
Wet pubs were allowed to reopen last June, but many did not, while nightclubs reopened briefly from October 22 to December 7.
Despite the strong end-of-year growth in Ireland, Diageo revealed that it is feeling the pinch from growing inflationary pressures, with costs rising and supply chains remaining strained.
Finance chief Lavanya Chandrashekar said the squeeze is being felt across all parts of the business, including shipping, the cost of raw materials, and higher energy bills.
She said: “We are seeing a higher level of inflation at the business than we’ve historically seen.
“Utilities specifically is where we are seeing the maximum increase in inflation, with oil and energy costs being higher.”
Aluminium and cereal costs have also increased, leading to price rises in some categories.
Ms Chandrashekar said: “We don’t do pricing action across the board. We have taken price (rises) in tequila in the US by 4.5%.
“We have taken some price in emerging markets... Nigeria and Turkey we’ve taken several rounds of pricing in these markets.
“It’s really on a case-by-case basis and it is done selectively in a very disciplined manner.”
Europe was one of the strongest regions for the global business, with sales in the area up 21%, or €370m (Stg£309m) to €2.03bn (Stg£1.75bn).
This also included a partial recovery in duty-free sales at airports as travel restrictions eased.
Chief executive Ivan Menezes said: “While we expect near-term volatility to remain, including potential impacts from Covid-19, global supply chain constraints and rising cost inflation, I am confident in our ability to successfully navigate these disruptions through the remainder of the year.”
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