Diageo press conference - LIVE

30th Jan 2014 10:01

Press conference begins.1200: Diageo Chief Executive Ivan Menezes says lower income consumers have been affected by economic uncertainty and that has particularly affected Smirnoff vodka sales. Diageo is planning a new marketing drive to strengthen the brand.1210 Menezes: "Overall we remain cautious about the medium term but we do see a number of areas where we can grow our brands."1227 Menezes: "We think our top line performance will improve in the full year and given our continued cost focus, we remain focused on achieving operating margin targets."1237 Menezes says it is too early to talk about implication for jobs of planned regional structure review. "We'll be working on that in the next couple of months and our people will be the first to know how our ways of working will evolve."Menezes says emerging market strategy remains unchanged. Growth in EM was 7-8% three to four years ago and it's 4-5% now. "It's still ahead of the developed world," he said.Menezes said there will be shocks and up-and-downs but Diageo's brands appeal to aspirational aspect of emerging markets. "We see 1.3 billion consumers coming into the emerging middle class in the emerging markets. There will be volatility but our brands play in a real sweet spot."1246 Menezes on Suntory takeover of US spirits firm Beam: "This is an asset that at some point was going to go and I would not say any more apart from the fact that it was not high on our list of priorities."Asked whether Diageo would make a counter-bid, Menezes said: "I never go on the record in saying yes or no to a question like that."1254 Menezes faces question about potential impact on Diageo and the Scotch whisky industry of the Scottish independence referendum this September.Menezes says Diageo has assessments of the possible outcomes under way. "We're clearly assessing all the possible scenarios and await more clarity."He added: "We're not engaging in the independence debate but we are very active. We have this fantastic business in Scotch whisky and we want to ensure we protect this business regardless of the outcome (of the referendum)."He said the company was working with others including the Scotch Whisky Association to ensure that the potential impact of the vote on trade, Scotland's membership of the European Union, industry conditions and regulations "do not get in the way of one of the great success stories of this country."Press conference ends.PW