Organic performance Exchange rate impacts increased net sales by 101 million

Organic performance exchange rate impacts increased

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Organic performance Exchange rate impacts increased net sales by £101 million and there was an organic increase in net sales of £7 million. Exchange rate impacts increased operating profit before 56
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Business review (continued) exceptional items by £14 million and there was an organic increase in operating profit before exceptional items of £10 million. Organic Organic Reported Reported volume net sales volume net sales Brand performance movement movement movement movement % % % % Global priority brands . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3 5 14 Other brands* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) (2) (2) 10 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 2 12 Key brands** Johnnie Walker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2 14 10 Smirnof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) (1) (5) 11 Bundaberg rum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8) (8) 22 Windsor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Guinness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 13 2 27 Ready to drink . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) 15 * Other brands consist of local priority brands and category brands. Movements in organic volume, reported volume, organic net sales and reported net sales for local priority brands are 2%, 2%, 1% and 4%, respectively, and for category brands 3%, 3%, 6% and 16%, respectively. The classification of brands as local priority brands and category brands has been discontinued for reporting purposes. ** Spirits brands excluding ready to drink. Australia In Australia net sales declined 1% as a result of a 5% decline in ready to drink net sales. In spirits the performance was stronger. The ‘Strides’ marketing campaign drove share gains and the strong performance of Johnnie Walker Red Label, with net sales growth of 19%, offset weakness in Baileys which was impacted by imports of the brand from outside Australia. Smirnoff volume was down 4%, however moderate price increases delivered flat net sales in a category that has seen increased competition from own label. Bundaberg volume declined 8% as growth slowed in dark spirits and a price increase held net sales flat. Marketing spend increased 2% and investment focused on the Smirnoff range. Korea The contraction of scotch in Korea during the global economic downturn combined with consumers trading down, led to a decline in volume and net sales of 8% and 3% respectively. A double-digit increase in marketing spend was focused on Windsor and Johnnie Walker Black Label and delivered 4 percentage points of volume share gain in the scotch category. Price increases on both Windsor 12 year old and Windsor 17 year old delivered price/mix improvement. South East Asia South East Asia, which includes Vietnam, Malaysia and Indonesia, performed well, delivering double-digit volume and net sales growth. Negative price/mix was driven by the increase in the level of business done through third party distributors, which led to a reduction in net sales per case and some destocking of super deluxe brands. Johnnie Walker performed well, as a result of a 15% increase in marketing spend which focused on the ‘Keep Walking’ campaign and Grand Prix sponsorship, and drove both share gains and increased brand equity. Guinness posted strong performance and the brand’s price premium drove strong price/mix backed by a significant increase in marketing spend behind the ‘250th Celebration’ and sponsorship of World Series Pool in Indonesia.
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  • Fall '15
  • Speak, Guinness, Diageo plc, Johnnie Walker

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