Chinese businessmen’s growing taste for Johnnie Walker whisky and South America’s love of Don Julio tequila has helped boost drinks business Diageo’s third-quarter sales.
Falling sales in the crisis-hit European markets were offset by growth in the emerging markets of Latin America, Africa and Asia.
Underlying sales at the world’s largest drinks business, excluding acquisitions and currency fluctuations, were up 6% in the first three months of 2012.
But a stark contrast in fortunes between regions saw Europe fall 1% while Latin America recorded a huge 18% sales growth. Despite the difficulties of Europe the London-based Smirnoff vodka-to-Captain Morgan rum business, said it is on track to hit its medium-term target, which is for 6% sales growth for the second half of its financial year.
It also aims to widen its operating margin by two percentage points in the next three years.
Last week Pernod Ricard, Diageo’s biggest rival, reported a 3% rise in its third-quarter sales.
Diageo’s shares have risen around 30% over the past 12 months and its share price stood at 1589p this morning.
