Diageo has revealed an enthusiastic set of growth targets as part of their capital markets day which includes sales growth of between 5% and 7% for fiscal years 2023 and 2025.
It also set out bold plans to capture 50% of the alcoholic drinks market by 2030.
“Diageo has declared it is party time as far as its growth ambitions go,” said AJ Bell investment director Russ Mould.
“Often considered to be a pedestrian company with slow but steady revenue gains each year, Diageo has now announced bold ambitions for a 50% increase in its share of the alcoholic drinks market by 2030.”
Diageo brands include Captain Morgan, Smirnoff, Jonnie Walker, Baileys and Gordon’s.
Ivan Menezes, Chief Executive, Diageo explained the groups strategy to active their goals which included spending on staff and marketing.
“Since our last Capital Markets Day, we have continued to invest in our brands, sharpened our focus on accelerating growth and quickly responded to shifts in consumer behaviour. We have also launched ‘Society 2030: Spirit of Progress’, our ten-year sustainability action plan, building on our strong track record of doing business the right way, from grain to glass.
“Our culture of everyday efficiency is embedded in our business and we continue to challenge ourselves to achieve more. In fiscal 21, despite the challenges created by Covid-19, we delivered strong organic net sales growth, drove an improvement in organic operating margin and delivered strong cash flows, while continuing to invest in long-term sustainable growth.
“We believe our sales growth trajectory has accelerated, underpinned by the strength of our advantaged position across geographies, categories and price tiers. TBA is a large, growing and attractive sector of which Diageo currently has a 4% value share. With continued investment in marketing, digital capabilities and our people, we have significant headroom for growth. This gives us the confidence that we can grow Diageo’s value share of TBA from 4% in 2020,1 to 6% by 2030.”