Allied Domecq says marketing pushed profits up 18%
LONDON - Allied Domecq has attributed an 18% rise in pre-tax profits to increased spend on marketing, and said that it plans to rely on a new campaign to revive its Kahlua brand.
The group reported profits of £571m for first six months of the financial year. It had increased marketing spend in its spirits and wine division by one third to £443m and has reported that seven of its core brands, including Beefeater gin and Teacher's whisky were now showing growth.
The company is spending £20m on the European launch of a new cream liqueur Tia Lusso, which it hopes will steal market share from Baileys.
This year, Allied Domecq has shaken up its agency arrangements on a number of brands. In September, it appointed Publicis Worldwide on its global creative account for the Beefeater, Stolichnaya and Kahlua brands.
Earlier in the year, it named a raft of Cordiant Communications agencies to work on its Malibu rum brand and it hired the Havas agency Magnet Communications to handle creative work in the US for champagne brands Perrier Jouet and Mumm.
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