* Eyes doubling sales in region over five years
* Qatar, UAE seen as growth markets
DUBAI, Dec 13 (Reuters) - British drinks group Diageo DGE.L wants to double its liquor sales in the Middle East and North Africa region over the next five years, as part of a focus on new emerging markets.
Diageo, which makes Johnnie Walker whisky and Smirnoff vodka, said liquor sales in the MENA region grew 16 percent this year. Gulf Arab countries contributed 44 percent of the sales, the company told reporters at a media gathering on Monday.
“We strongly believe that the combination of global travel (retail sales) and Middle East and North Africa is set for growth,” said Jane Ewing, managing director for global travel and the Middle East at Diageo.
“Key elements of the business can double over the next five years.”
Diageo, whose brands also include Captain Morgan rum and Gordon’s gin, is eyeing new core markets like Abu Dhabi where newly opened hotels and resorts have been boosting sales, with year-on-year sales growth of 28 percent.
Hugo Mills, general manager for the Gulf region said Abu Dhabi “will be a core market for us within the next 8-10 years”.
Qatar’s successful bid to host the soccer World Cup in 2022 will open opportunities to boost liquor sales, Ewing said.
Liquor companies mostly target the large expatriate population based in countries such as the United Arab Emirates, Qatar and other Islamic nations in the region where alcohol sales are restricted.
Diageo’s business in Dubai, one of the its key markets, was hit by the debt crises, with sales there falling about 30 in its 2009 financial year. The company said the tourism boom seen in Dubai between 2006 and 2008 was not expected to return soon and focus has shifted to other markets.
“Every room was full .... every hotel wanted to have events, parties. You could not get tables in restaurants,” said Ewing. “Earlier it was all about Dubai but now it will be more spread.”
Net sales in MENA grew 22 percent in 2008 compared to 6 percent in 2009.
Diageo has been pushing into fast-growing developing markets, where it makes around one third of its profit. It was said to be in preliminary talks to buy Turkish spirits company Mey Icki. [ID:nLDE6B90GK] (Reporting by Praveen Menon; Editing by Dan Lalor)
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