SCOTCH whisky maker Bruichladdich has doubled its sales but failed to stop owner Remy Cointreau's half-year revenues falling almost six per cent.
Yet the drinks group signalled it is hopeful of growing organically this year in spite of ongoing softness in China related to the government's austerity drive.
That cautious assessment mirrored a separate forecast by Johnnie Walker maker Diageo yesterday as it reported volumes had dipped 3.5 per cent in the quarter to September 30.
Diageo chief executive Ivan Menezes said he still expects annual growth and suggested the quarterly sales fall was partly as a result of tough comparable figures. While Diageo did not give any specific update on its Scotch whisky brands, which also includes Buchanan's, J&B and Windsor, it said organic net sales across its portfolio dipped by 1.5 per cent. However its more upmarket reserve brands, which retail for greater than £25 a bottle and includes the likes of Johnnie Walker Blue and Platinum as well as Tanqueray Gin, had grown 10 per cent in the period.
Quarterly performance in North America showed 0.1 per cent growth while Europe was 1.4 per cent behind as a result of weaker sales in the Benelux countries and across eastern Europe.
Nigeria was a weaker performer but east and South Africa were said to have been stronger in the period with Africa as a whole flat.
Latin America and the Caribbean was down 1.4 per cent on the back of price increases in Brazil to bring in consistency across the country. Asia Pacific was down 7.4 per cent with China seeing organic net sales tumble 20 per cent although Diageo said there were signs trends there are beginning to moderate. Other parts of the region, including India, travel operations in Asia and the Middle East, delivered good growth.
Mr Menezes said: "Emerging markets' performance remains weak with further currency weakness in a few markets and specific geopolitical situations in some areas. However our brand performance has been strong in many markets including Turkey, East Africa, India and Colombia.
"We expect full year top line growth to improve on last year's performance."
It was a similar picture at Remy Cointreau with softness in various markets with the flagship Remy Martin cognac brand the worst affected with its organic sales down 13.4 per cent to 276.8 million euros (£221m). The Middle East, Africa and Europe reported growth. The Americas were flat and Asia Pacific continues to decline as a result of China. Group sales for the six months to September 30 were at 471.8m euros, down from 558m euros.
Paris-listed Remy is also absorbing the impact of ending its US distribution contract with Edrington Group after The Macallan maker decided to set up its own network. That shaved around 48m euros off Remy's sales in the period although it still distributes some spirits from William Grant & Sons as well as some champagne brands.
Remy's spirits and liqueurs division - which includes the likes of Bruichladdich, Cointreau and Mount Gay Rum was the star performer rising 7.6 per cent in the half year to 129.5m euros.
While Remy would not confirm its exact Scotch whisky sales it indicated Bruichladdich had contributed around 80 basis points to organic growth. It said: "Bruichladdich sales doubled in the first half, driven by the strong momentum of its product range in the US, Taiwan, the UK and travel retail."
Bruichladdich, bought from a consortium of private shareholders for £58m in July 2012, had turnover of £11.1m in the 12 months to March 31, 2014.
Analysts now believe drinks firms are likely to see improvements in trading this year.
Referring to Diageo, RBC Capital Markets said: "In our view, there is a good chance that this should be the worst quarter in terms of organic sales growth for the year."
On Remy the broker Bryan, Garnier & Co, said: "There is no denying that the performance of the division should materially improve in (the second half) due to very easy comparisons, but the issue is the magnitude of the rebound."
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