Whisky giant Diageo toasts profit rise as drinkers go premium but slams alcohol duty overhaul

Johnnie Walker maker Diageo has cheered higher annual sales as drinkers continue to trade up but slammed this month’s changes to alcohol duty, branding them a “headwind” as the industry tackles higher costs and economic uncertainty.

Unveiling sales of £17.1 billion for the year to 30 June, representing organic net growth of more than 6 per cent, chief executive Debra Crew pointed to double-digit growth in Scotch whisky, tequila and Guinness, with the group’s “premium-plus” brands contributing 57 per cent of the overall organic sales growth. She also paid tribute to former chief executive Sir Ivan Menezes, who passed away in June, aged 63, following a brief illness, saying she was “proud of how our Diageo family has come together in recent weeks”.

The London-listed company ranks as the world’s largest spirits maker, with almost 30 malt distilleries in Scotland and some 3,500 employees north of the Border out of a global workforce of 30,000. It owns major global brands such as Guinness stout, Smirnoff vodka and Captain Morgan rum.

Changes to the way alcohol is taxed in the UK have led to hikes of up to 20 per cent on wine while other low-strength options now cost less. The UK government’s decision to tax alcohol based on its strength has led to spirits and wine makers complaining they have been unfairly hit.