Diageo sees faster growth in Africa than Asia

DIAGEO, the world’s largest drinks group by sales, told investors on Tuesday that sales to Africa now accounted for 13% of the total — or £1.5bn — up from 9% seven years ago. Over the past decade, the UK group’s sales to the region have grown 13% on a compound annual basis.

Diageo expects further accel- eration, having invested £1.2bn in capital expenditure and acquisitions over the past decade. Nicholas Blazquez, Diageo president for Africa, Turkey, Russia and Eastern Europe, said: “Do I think Africa will accelerate faster than Asia? Yes, I do.”

The continent has become a magnet for consumer goods companies. “The last two decades were about the Brics (Brazil, Russia, India, China and SA) — now it’s about Africa,” said Andy Fen- nell, Diageo’s chief operating officer for Africa, citing the 65-million extra drinking-age consumers expected over the next decade.

Pernod Ricard, the world’s second-largest spirits group, has increased investment in Africa over the past two years, creating five affiliates in sub-Saharan Africa in the last year in Nigeria, Ghana, Angola, Kenya and Namibia.

The French group’s sales to Africa are in the low single-digits but its push is aimed at boosting market share and sales, especially of whisky.

L’Oréal, the Paris-based cosmetics group, acquired Inter-consumer Products, a Kenyan beauty business, earlier this year.

The company said the move “demonstrates our confidence in this region and its market potential driven by a rising middle class, growing income and long tradition of beauty practices”.