Diageo´s revenues hit by lockdown in first half of the year

Diageo, the world's largest alcohol maker, said total net sales for the fiscal year fell 8.7% to £ 11.8 billion ($ 15.4 billion). Diageo CEO Ivan Menezes said in the release that the COVID-19 pandemic more than wiped out gains made in the first half of the year. Diageo also owns iconic brands like Smirnoff vodka and Guinness beer. The North American market posted organic net sales growth of 2% driven primarily by strong sales in grocery stores. But that trend hasn't doubled elsewhere as Americans tend to consume more alcohol at home than in bars or restaurants. Diageo's second largest market, India, saw organic sales decline 17% as alcohol sales were banned in that country amid the pandemic. Elsewhere, the typical Korean consumer began moving away from scotch and consuming low-alcohol products instead. The alcohol industry isn't usually associated with a thriving online business, but Diageo is adapting. The company doubled its e-commerce business last quarter, although it's still a relatively small part of the business, Diageo CEO Ivan Menezes said in a Bloomberg TV interview. The company also benefits from American bars offering cocktail kits consisting of its beverages for delivery, the CEO said. Similar delivery options are offered around the world, such as some states in India, East Africa and elsewhere, he said. "We're moving with a lot of agility to make sure we can serve our consumers effectively in these conditions."