The market leader in spirits, Diageo Australia, which sells brands including Johnnie Walker, Smirnoff, Baileys and Bundaberg Rum, has suffered its third successive drop in annual profit in a market where the power of the two big liquor retailing chains, Woolworths and Coles, is increasingly influential. 
But the Australian arm of the global spirits giant says it has been able to increase its market share marginally to 32.5 per cent and is looking to the increasing trend of more people drinking spirits at home to revive profit in 2016, fuelled by advertising campaigns such as those fronted by Master Chef judge Matt Preston.
The Australian arm of the global spirits giant made a net profit of $25.6 million in 2014-15, down 4.1 per cent from the previous year, when it had net profit of $26.7 million. It extends a profit tumble from the $43 million in net profit after tax the company made in 2012-13 and the $44.7 million it generated in 2011-12.
Sales revenue for Diageo Australia in the 12 months ended   June 30, 2015, crept ahead to $523 million from $517.4 million in the previous year. Sales reached $542 million in 2012-13. It makes about 80 per cent of its total sales to liquor retailers, with most going to Woolworths and Coles. The other 20 per cent of sales is from hotels, bars and other licensed venues.
The latest financial results lodged with the Australian Securities and Investments Commission were the last under former managing director Tim Salt, who resigned on   June 30In   September, Diageo Australia appointed a new CEO, David Smith, who has worked for the British-based drinks group for more than 25 years.
A spokesperson for Diageo said the market remained competitive but its market share had increased to 32.5 per cent in   October 2015, from 31.9 per cent a year earlier.
Chris O'Brien, general manager of the Liquor Barons chain of 64 outlets in Western Australia, said there was a strong seasonal component in the spirits market and it was probable there would be a spurt in sales in the next fortnight as customers hunted for gifts.