Guinness sales returned to growth in Europe

The Smirnoff vodka and Guinness maker reported a 5% rise in half-year pre-tax profits to �1.37bn ($2.7bn).

A new advertising campaign helped to revive Guinness sales in the UK and the Irish Republic, which lifted overall sales in Europe by 4%.

US sales grew 6% and by 16% across Africa and South America.

Sales in the Asia Pacific region were up by just 1%, hurt by the loss of Diageo's import licence in Korea in July last year, the closure of a number of duty free airport stores in India and lower shipments of Johnnie Walker into China.

But the firm said consumer demand in the region's booming economies remained strong.

Guinness comeback

The latest in the series of "Good things come to those who wait" Guinness adverts helped to revive the fortunes of the stout in the UK and the Republic of Ireland, lifting sales there by 4% after sales fell last year.

Part of a �10m marketing campaign, the advert, which features hundreds of villagers creating a massive domino effect, was the most complex and expensive yet.

The boost helped the Irish Republic reclaim its position as the stout's second biggest market after its popularity in Nigeria saw the African nation temporarily take its place last year. The UK remains the world's largest Guinness consumer.

Diageo has also been making a big push into the premium spirits market recently to offset declining thirst for beer in the US and Europe.

Earlier this month, it paid the owners of Dutch vodka brand Ketel One $900m for a 50% stake in a new firm which will sell, market and distribute the Ketel One brand.

Bright future?

"This first half performance demonstrates that our brands are well supported and our routes to market remain strong," said Diageo's chief executive Paul Walsh.

He said the group would meet profit guidelines for the year but would "continue to watch for any impact that recent financial market volatility may have on broader trading condition".

Analysts were encouraged by the firm's performance.