Bangkok--20 Feb--Aziam Burson-Marsteller
Diageo Moet Hennessy (Thailand) Limited has reported favorable business performance for 2006 despite an economic slowdown and downturn in the alcohol business. The company enjoyed 43% overall growth, with a 70% market share for Johnnie Walker Black Label in its market segment; 79% for Johnnie Walker Red Label in its market segment; and 10% for Benmore in its market segment. Diageo Moet Hennessy remains focused on retaining its existing customer base in 2007, which includes working people who have high purchasing power.
Mr Vorathep Rangchaikul, President, Diageo Moet Hennessy (Thailand) Limited, which imports and sells leading alcohol drinks, unveiled the company’s business performance for the twelve months from July 2005 until June 2006. Sales were 7.290 billion baht, up 43% over the same period in 2005. For the second half of 2006, from July through December, sales grew 11% to 4.479 billion baht compared to the same period of the previous year. The company gained market share from competitors despite a drop in overall sales for the alcohol industry in Thailand.
The growth in market share for each product during the 12 months’ business performance (July 2005 to June 2006) and the second half of the 2006 (July to December 2006) reflected the significant growth for last year’s overall sales:
Product Sales over 12 months Sales in the second half
(July 2005 — June 2006) of 2006 (July-December 2006)
(% growth) (% growth)
Johnnie Walker Red Label 44 42
Johnnie Walker Black Label 14 1
Benmore 484 65
Smirnoff 36 38
Champagne line including Veuve
Cliguet, Moet & Chandon,
Dom Perignon and Krug 37 24
“Last year’s economy slowed down due to several negative factors, leading to less confidence and more cautious spending by consumers. According to AC Nielsen, the foreign spirits business decreased approximately 14%. However, our sales for each product successfully hit their targets despite a decline for the overall alcohol business. This was mainly due to the high acceptance of our leading-quality alcohol beverages by working people who have high purchasing power and want quality products that best meet the demands of their premium lifestyles,” said Mr Vorathep. “We held 70% market share for Johnnie Walker Black Label, 79% for Johnnie Walker Red Label and 10% for Benmore. The striking success of Benmore and Smirnoff in terms of brand building, product launches and sales promotional campaigns and subsequent excellent acceptance of the two brands was a great achievement.”
Mr Vorathep added, “2007 started with our corporate name change to Diageo Moet Hennessy (Thailand) Limited. The new corporate name puts our operation in alignment with other markets around Asia while capturing the brand equity of our corporate shareholders including Diageo, the world’s largest alcohol company with 4.022 billion pounds (about 281,540 million baht) in sales for the six months from July to December 2006, and Moet Hennessy, one of the world’s leading alcohol manufacturers. This solid and strong corporate identity will also provide more opportunities for us as a business as we further our efforts to drive responsible drinking and marketing in the region.”
“For our 2007 marketing, we will remain focused on retaining the image of being the market leader for premium alcohol drinks that complies with responsible marketing regulations. This reflects our commitment to run our business with social responsibility and ethically, growing in collaboration with our partners and focusing on people development,” said Mr Vorathep.
For social activities, Mr Vorathep said that overall, the company is committed to increasing responsibility in Thai society by conducting activities regarding alcohol risks, promoting the participation of all sectors and creating initiatives based on the empirical data and findings of studies that prove the efficiency of programs to prevent and solve alcohol-related problems and inappropriate drinking habits. Last year, Diageo Moet Hennessy became a member of the Federation on Alcohol Control of Thailand (FACT), which was established to cultivate appropriate attitudes and habits for consumers, encourage social responsibility in terms of alcohol-related issues among alcohol companies and provide education about responsible drinking via the Care for Friends Club of the Thammasat Foundation. The Care for Friend Club has more than 100,000 student members from 80 educational institutions throughout Thailand. Its prime mission is to work closely with communities around universities and educational institutes, the educational institutes’ management and student organizations to implement programs to prevent alcohol risks for youth.
In 2007, Diageo Moet Hennessy is committed to running three main projects including: i) Alcohol education comprised of studies of inappropriate drinking behavior and related problems and developing a communications program to promoting the “Think Before Drinking” concept; ii) Implementing alcohol-related social campaigns including “No Drinking Among Youth” and “Drink, Don’t Drive”; and iii) Working with partners to define alcohol policies to more effectively reduce problems related to inappropriate alcohol consumption.
“We realize the importance of social responsibility that alcohol companies should have in running their businesses and encourage the development of “Think Before Drinking” attitudes and habits in Thai society,” concluded Mr Vorathep.
Diageo Moet Hennessy (Thailand) Limited is the leading importer and distributor of premium alcohol products including quality and stylish alcohol drinks in both spirits and wine. The company is committed to running its business in a transparent and responsible manner and is engaged in providing knowledge on responsible drinking to consumers and the public.
For further information, please contact:
Diageo Moet Hennessy (Thailand) Limited Aziam Burson-Marsteller
Somrasa Pongpermpruek Waraporn / Satida
0-2685-6920 0-2252-9871
Anya U-Thasoontorn
0-2685-6983
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