Sales up at Diageo

Diageo has announced that organic net sales rose 9.4% in the six months to December 31st 2022, beating analyst forecasts for a 7.9% rise. The growth reflected organic volume growth of 1.8%, indicating 7.6 percentage points of higher price growth. Organic operating profit grew 10%.

The company has stated that its premium plus brands drove 65% of its organic net sales growth.

“We believe we are well-positioned to deliver our medium-term guidance of consistent organic net sales growth in the range of 5% to 7% and sustainable organic operating profit growth in the range of 6% to 9% for fiscal ‘23 to fiscal ‘25,” Chief Executive Ivan Menezes said in a statement.

Coca-Cola bottler warns prices, glass costs to rise

Coca-Cola Europacific Partners (CCEP) has stated it expects to hike prices further and that glass costs would rise by the "mid-teen to low double digits" this year at a time when it is trying to sell more returnable glass bottles. Glass shortages have persisted for beverage companies and other manufacturers since the pandemic, with the issue compounded by Russia's invasion of Ukraine. In an article on Reuters, Nik Jhangiani, finance chief of CCEP, which bottles and sells Coca-Cola products in Western Europe, Australia and New Zealand, said: "It's quite significant and part of it is also led by the shortages that we had, given the unfortunate war breakout between Russia and Ukraine, as we had a lot supply there. So we had to look at alternative sources of supply as well, to ensure that we could continue having our products available on shelf.” The bottler has been investing in its programme to sell more products in glass bottles that can be returned to hotels and restaurants, amid concerns about waste. CCEP has rolled out returnable glass bottles in France, Spain and Belgium. "We will take pricing in 2023 and we'll work through in our markets the timing and the right levels of pricing," CCEP's Jhangiani said. "We didn't take prices up at the same rate because it comes back to taking it in more manageable, bite sized chunks."

JJ MAHON & SONS IS EXPANDING ITS PRESENCE IN THE NORTH WEST WITH ITS ACQUISITION OF DRINO DRINKS