Diageo, the world's biggest spirits group, said today that it should see sales growth in Africa accelerate as it expands into new markets like Ethiopia and Angola and rising incomes enable traditional beer drinkers to try spirits.
Africa currently generates €1.65 billion in annual sales for Diageo, accounting for 12% of the group total, and sales have been growing at a compound annual rate of 13% over the past decade.
"I fully expect that over the long term to be the same, if not accelerate," said Nick Blazquez, Diageo's president for Africa, Turkey, Russia and Central and Eastern Europe.
The lion's share of Diageo's sales in Africa come from Kenya, Nigeria and South Africa, but as it expands in places like Ethiopia, Mozambique and Angola, the rate of growth should increase, shareholders were told today.
Most of what Diageo sells in Africa is beer, both local brands like Tusker and Serengeti, and its global brand Guinness.
Company directors believee that the opportunity to grow now lies in spirits, which Diageo is pushing at many of the locations it already sells beer.
In addition to its premium, international brands like Johnnie Walker Scotch and Smirnoff vodka, Diageo sells value-priced brands like Jebel gin.
