Diageo is looking to up its marketing spend by 10% in North America during the first half of the year.
The firm said it is hoping for a “pick-up in demand” later in the year, with sales volumes in the North American spirits markets expected to be “flat to up 1%” in 2010.
Speaking at the Reuters Food and Agriculture Summit in Chicago yesterday (17 March), Ivan Menezes, head of Diageo’s North American region, said that the firm remains “cautious around the face of recovery”, but said the firm’s data suggests “things have stabilised”.
The UK-based company said it expects to “outperform” its competitors in the North American spirits market in 2010 and continue to increase its 30% share of the market.
Menezes told attendees, however, that the firm is “waiting to see the leading indicators move” before moving on price increases and improved mix for the business.
Weak consumer demand in the economic downturn caused Diageo to report a fall in half-year profits last month, but the drinks group said at the time that a recovery is on the way.
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