Page last updated at 08:54 GMT, Thursday, 7 May 2009 09:54 UK

Sales drop for drinks firm Diageo

whisky bottles
Diageo's sales have fallen sharply in the Russian market

Drinks giant Diageo has announced sales were down 7% in the three months to the end of March.

The company, which has its headquarters in Edinburgh, said markets around the world had weakened, with sales sharply down in Russia.

Diageo, whose brands include Guinness, Smirnoff Vodka and Johnnie Walker whisky, said the fall was also down to planned stock reductions in the US.

The company said it was still on track to raise profits by 4% to 6% this year.

Paul Walsh, Chief Executive of Diageo said restructuring meant the company would emerge from the global downturn "as an even stronger business".

Diageo announced a cost-saving programme when it reported an increase in profits in February.

Production has been cut and a packaging plant in Kilmarnock was closed for a period of two weeks to save money.

Diageo said it had continued to invest in the business. Work has started on a £65m green energy plant in Fife.

A new distillery at Roseisle in Speyside is due to open in a few months time, part of a £100m investment.

Diageo employs 4,500 in Scotland. It owns 27 malt distilleries as well as the Gleneagles Hotel.



Print Sponsor


SEE ALSO
Guinness firm cuts profit target
12 Feb 09 |  Business
Diageo expects 'challenges' ahead
28 Aug 08 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific