Diageo has changed its business but failed to pass on the benefits to shareholders, new chief executive Ivan Menezes has said.
Mr Menezes, who took over in July after the 13-year reign of Paul Walsh, said in his first investor presentation: "Diageo hasn't translated its industry-leading brands and branding skill into shareholder value. Changes have happened but it is still a show-me."
The company's new "performance ambition" message is that Diageo is "a global leader with the ambition and capabilities to achieve more".
Diageo unveiled three in-depth reports on its business yesterday, including one on Scotch whisky, said to be key to group performance. Scotch contributed 28% of net sales last year but 35% of gross profit, 50% of net sales growth and 56% of gross profit growth.
The group has 44% of the standard Scotch category worldwide, 50% of premium and 44% of super-premium, its 10% of the value category giving it a total market share of 35%.
Its star Johnnie Walker Black brands have steadily widened the gap to their closest competitor in cases sold since 2000, when Mr Walsh took over.
Net sales have risen by £1bn to £3.2bn since 2008. Sales in emerging markets have grown from 53% to 65% of total sales since 2007, and the report says indicators are "positive" for future growth.
It cites six drivers of expansion: geographic footprint, portfolio offering and innovation, better margins, stronger supply, marketing programmes, and targeting new consumer groups by "encouraging emerging middle-class consumers to 'step up' to scotch".
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