RAPPED in the congenial warmth of the average public house there may be nothing quite like the pint of plain on a raw winter's evening. But when the sun is splitting the stones more Irish drinkers are turning away from the black and white, seduced by the cool amber nectar of lager. Once this would have been bad news for Guinness. But the famous harp now represents more than just stout, possessing an ample drinks' cupboard of spirit and lager brands to counteract any metro logically inspired shift in consumption patterns.
Reporting annual results this week showing 5 per cent growth in pre-tax profits to £148 million at Guinness Ireland, managing director Colin Storm said home market sales of lager grew almost 11 per cent. Rising sales in the Republic and on export markets lifted turnover 5 per cent to £703 million. Despite trendy marketing, stout as a percentage of the beer market contracted by 3 per cent but Guinness says it maintained its market share.
The promotional push to raise the profile of its beers and lagers abroad resulted in a buoyant 16 per cent increase in export sales. Also concept marketing of Irish pubs abroad has been an outstanding success, the number of outlets increasing 300 to 800 in the past year.
While Guinness Ireland considers the current year's outlook to be "more positive" its parent warns that trading conditions are unlikely to improve significantly. Group profits fell £39 million sterling, distorted somewhat by a £64 million reorganisation charge.
Shareholders can afford a round or two with total dividends raised 8 per cent, from 13.8p to 14.9p a share. The group yesterday announced its intent to buy back up to 4.9 per cent of its stock at a cost of £460 million.