Americans are drinking more expensive booze, in particular tequila and whiskey, the boss of spirits maker Diageo told CNBC, after the company reported full-year earnings on Thursday.
The maker of Smirnoff vodka and Johnnie Walker whiskey said that organic net sales were flat in the year ending June 30, following a tough 12 months as the drinks maker continued to nurse a hangover in some of its markets and spirit categories.
North America has been a tough market for the London-headquartered drinks giant, with volume declining 3 percent and net sales dropping 1 percent.
But Diageo's chief executive said he was confident the region would recover as Americans take to higher-end spirits.
"They (Americans) are drinking better in whisky, in vodka, in tequila," CEO Ivan Menezes told CNBC in an interview on Thursday.
"But we've got a portfolio that covers the whole breadth of price points and you will see us activate our brands, be it Smirnoff or Ciroc…but Americans in general are drinking better and that bodes very well for us because we are very well positioned in the premium end of the business."