Diageo cuts marketing spend

 Diageo, maker of Guinness and Smirnoff, is to spend less on marketing this year but plans to get more for its money.

The drinks maker’s chief marketing officer Andy Fennel says marketing spend will be down but because of cheaper media rates, up to 25% in some markets, “effective spend will be up”, according to a Reuters report.

Fennel says Diageo’s focus will be on growth areas such as Africa, Latin America and parts of Asia, which he says will continue to see double-digit growth after reporting a 25% bump last year.

Last year, Diageo’s organic marketing spend dipped 1% on media deflation and in February reported global first-half net sales grew 18%.

However, sales have been slower in European markets such as the UK, which have been harder hit by the slowdown in customer spending, although Fennell adds that Diageo had a “good Easter” in the UK and Ireland.

One of the company’s flagship brands Guinness is celebrating its 250th anniversary this year with a major worldwide marketing campaign.