Guinness turns the tide after big increase in marketing by Diageo

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Dominic Walsh / The Times /February 15, 2008 © Copyright 2008 Times Newspapers Ltd.


Summary

Diageo, the world's biggest drinks company, has turned round the fortunes of Guinness in Britain and Ireland after a big increase in marketing of the brand.

Sales volumes of the stout rose by 3 per cent in the UK for the six months to December 31 compared with a fall of about 5 per cent in the overall beer market. It was the first rise in sales of Guinness since 2005. Volumes in Ireland, which had fallen sharply in recent years, were flat despite the overall market declining.

Shares of Diageo rose by 47p - almost 5 per cent - to £10.81, the biggest increase in the FTSE 100. The company reiterated its forecast of full-year underlying operating profit growth of 9 per cent.


Opinion

Having a good brand image is crucial in marketing. Marketers make people buy their product only by having recognition of their brand name. It revealed in this article as well.

Paul Walsh, chief executive of Guinness, said” We continue to look at all our options, but the last thing I want to do is harm the provenance and heritage of the Guinness brand.”

Guinness' advertising campaigns in European countries were popular on websites such as YouTube. This contributed to get high image of brand.


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