DGE Diageo Plc

RNS Number:4850A
Diageo PLC
9 November 1999




                    DIAGEO ANNUAL GENERAL MEETING

Diageo  will hold its Annual General Meeting today at 2.30pm at which  Chairman,
Sir Anthony Greener will Make the following remarks about current trading:

"Recent trends are consistent with those seen in the last six months of the year
ended June 1999. Diageo continues to benefit from good performance by the key
profit drivers in the first quarter of the new financial year.

In  Spirits and Wine, total volume of the nine global priority brands has  grown
by  3% in the first three months of the financial year. Volume of the top five
brand market units grew 8% and volume of the top ten BMUs grew 6%, highlighting
the strength of our business in the United States and Europe. The performance of
Johnnie Walker Red has improved since the beginning of the new financial  year
and total volume has increased strongly. Volume of Johnnie Walker Black is up
worldwide, although the rate of growth is lower than during the period of rapid
recovery in Asia in the six months to June 1999.  Smirnoff has  also performed
well in its major markets.  In the US, Smirnoff volume is  unchanged despite
aggressive price increases and therefore net sales revenue is up  approximately
7%.  J&B  continues to achieve increased volume in its  major market,  Spain, 
however other markets remain weak.  Baileys, Cuervo and Malibu have all
performed strongly in the US.  Total volume of these three brands continues to
improve. Tanqueray volume worldwide has increased against the prior year and
total volume of Gordon's is up.  Trading in Asia/Pacific has continued to
improve. The trading situation in Latin America has not changed since the
beginning of the year.  The improvement in trading  performance, in Spirits and 
Wine,  achieved in this quarter is the result of focused marketing investment.
Diageo will continue to invest behind its strong market positions, and marketing
spend in  Spirits and Wine is expected to be up about 15% in the first half of
the year.

In  Packaged  Food,  volume has increased in Pillsbury North America with 
continued strong performance from Toaster Pastries as new  plant has  been
commissioned and capacity increased to meet consumer demand,  There has been
continued organic volume growth in Pillsbury Bakeries and  Foodservice and
reported volume trends will also benefit from the impact of the Heinz  
Foodservice and Hazelwood Farms  acquisitions.  Volume trends in International
have shown some improvement and volume has increased on an organic basis year on
year. Marketing investment to  drive top line growth has been accelerated into
the first  quarter and is also expected to be up in the first half of the year
by 15%.

In  Beer,  Guinness volume trends are broadly unchanged.  In Great Britain,
volume is in line with last year and in Ireland market share has improved
although volume is lower than in the first quarter last year.  Volume  in Africa
has continued to grow. A quality  improvement programme to reduce stock levels
in the United States has had a  short term impact on shipments,  but depletions
continue to increase strongly.

In  Quick  Service Restaurants, comparable restaurant sales for the period  are
down  by  3%  in North America.  This  was  expected, as comparable restaurant 
sales  growth in  the  prior  period  was  6%.  Comparable restaurant sales are
up 2% in the Rest of the  World  with continued strong performance in Europe and
Latin  America.  160 new restaurants have been opened in the first quarter and 
system  sales have increased by 4%.

I believe that profitable top line growth is the key contributor to our 
objective to deliver superior shareholder returns. As I said at the time of
Diageo's Preliminary Results announcement in September, I am  confident that we
can deliver organic operating profit growth,  in  addition to that generated by
further merger synergy."


Investor Relations enquiries.
Catherine James             0171 927 5272

Media enquiries:
Kathryn Partridge           0171 927 5225

END

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