Guinness owner Diageo toasts 5.9% jump in sales

GLOBAL drink giant Diageo served up a positive update to investors last week, with all regions except Europe raising a glass to growth.

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Diageo owns a world-class cocktail of brands, including Guinness, Smirnoff, Johnnie Walker and Tanqueray. Organic sales rose 5.9% in the third quarter, helped by a strong mix of both price and volume growth.

Customers stocking up on booze before higher tariffs kicked in flattered sales figures in the period. But the big picture is that full-year targets remain on track, and there are early signs that the industry is recovering from its cyclical hangover.

The Latin American and Caribbean region was a major pain point last year. Sluggish demand led to a sharp drop in sales and a group-wide profit warning. Performance has since improved, and the region is now benefiting from some easy comparable figures.