Diageo sees Asia getting in the spirit

Its Asia Pacific chief Gilbert Ghostine yesterday said he sees Asian economies, ex-Japan, rebounding strongly and is planning for a near 10 per cent sales rise across the region in the group's financial year to end-June 2011.

Strong growth in China, India, Vietnam and Indonesia will power the region's performance and he expects sales to rise by a high single digit percentage this year compared to a mere 1 per cent rise in the downturn-hit financial year to June 2010.

"Consumer confidence is returning quickly to Asia. Ex-Japan, the economies of Asia are rebounding back very quickly," Mr Ghostine said.

The London-based drinks giant makes 10.4 percent of its group sales in its Asia Pacific region and earns just 6.4 per cent of group profits there, but it is reinvesting heavily for future growth, especially in China.

Mr Ghostine said Diageo's Chinese sales grew 10 per cent plus in the first six months of 2010 and he expected a similar performance in the year to June 2011 in an international spirits market in China which is expected to grow 5-6 per cent.

"In China there are 20 million new consumers which reach the legal drinking age each year. There is a very big aspiration for international spirits," he said.