Diageo profit rises 11 per cent on strong demand for Johnnie Walker and Smirnoff

Drinks maker Diageo has seen its profit rise 11 per cent on strong demand for its brands Johnnie Walker blended Scotch and Smirnoff Vodka in countries like China and Brazil.  Johnnie Walker whiskey experienced an 'exceptional' 15 per cent sales growth as demand increased in  South Africa, Brazil and Asia Pacific countries.

Smirnoff saw double-digit growth in Africa and Latin America, thanks to a marketing campaign featuring Madonna.

However, the company's performance in western markets was rather listless with UK net sales sliding 2 per cent even as showings remained strong for Smirnoff Red, Guinness and Red Stripe.

UK beer sales were up 6 per cent, on increasing prices for Guinness and a successful year for Red Stripe.

However, net sales in Western Europe as a whole were down 4 per cent with the debt crisis reducing people's spending power, especially in Spain, Portugal, Greece and Italy, though sales in emerging markets were up 15 per cent, which now contribute around 40 per cent of its total sales.

Ater ramping its focus on emerging markets in recent years, Diageo, which is the world's biggest drinks company with a market in 180 countries, posted a rise in operating profits to £3.2 billion.