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Diageo Earnings: Proof That Sluggish Economies Still Need Booze

 

Last year, Diageo’s (NYSE: DEO) wine and spirits business was killing it.

But how is the maker of brands like Johnnie Walker, Smirnoff and Ketel One faring now as the world’s economy continues to slow?

The same.

It reported a 2% increase in profits this quarter, while sales jumped 10%.

Diageo CEO, Paul Walsh, says that alcohol sales are “doing fantastically well. Our reserve brand portfolio globally is now over one billion pounds in sales… I don’t see that changing.”

The eurozone situation specifically isn’t hampering growth for the company, either. “We grew Johnnie Walker in Europe 5%… We grew Captain Morgan in Europe 25%, our beer business is fine.” And Asia is one of its fastest growing markets.

Walsh also believes that the growth should only continue, even if the global slowdown gets worse.