DIAGEO SAID IT OUTPERFORMED THE MARKET

in the current fiscal year, ending June 30, despite a slowdown in U.S. spirits in recent months. Diageo is sticking with its 2007 fiscal forecast of an 8% organic growth in operating profits, the company announced last week, thanks to double-digit growth in Asia and strong trading in the U.S.

Sales were driven by Johnnie Walker and J&B whiskey brands along with Guinness, despite a decline in RTDs in Europe. Sterling Vineyards and French agency wine brands showed strong growth in the U.S.

Much like all wine and spirits companies, trading up in the U.S. continues to benefit Diageo, and allowed the company to outperform the market in 2007.

Melissa Earlamd of UBS called Diageo’s release “overall upbeat in tone.”