Desire for rum in the U.S. is 'sluggish.' Blame the fall of the rum and Coke?
Diageo has warned a shift away from carbonated drinks has caused sales of Captain Morgan rum to shrink as health conscious Americans drink less rum and coke.
The world’s biggest spirits firm also said net sales of vodka were flat in the US, which was an improvement over the prior year, spurred by growth in Ketel One and Smirnoff. Diageo DGE, -2.88% chief executive Ivan Menezes said: “The rum category in the US has been sluggish for a long time. Carbonated soft drinks has something to do with this as people are drinking less of it.
“We are changing the drinks profile to be less dependent on pure with cola and into other drinks and we are innovating on it. It will not turn overnight. I expect the trajectory to get better.”Diageo, which also makes Johnnie Walker Scotch whisky and Guinness stout, says North America accounts for 35% of total sales and in the full year update said operating profit rose 3% to £52million on a 5% rise in net sales to £216million.
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