Category Archives: Diageo

Diageo slashes dividend and vows to address Guinness capacity constraints in London

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Drinks maker cuts annual sale and profit forecast for second time in four months amid weak demand in US and China

Diageo has slashed its dividend and cut its annual sales and profit forecast for the second time in four months, as the maker of Guinness warned of capacity constraints affecting drinkers of “the black stuff” in London pubs.

The world’s largest spirits maker – which owns brands including Smirnoff vodka, Johnnie Walker whisky and Don Julio tequila – reported weak demand in the US and China in the first results released under the new chief executive, Sir Dave Lewis.

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Johnnie Walker owner Diageo says Trump tariffs could hit profits by $200m

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UK drinks company considering possible price rises as shares fall despite strong Guinness sales

Diageo, the company behind Smirnoff vodka and Johnnie Walker whisky, has said US tariffs could damage a nascent recovery in its sales and result in a $200m (£161m) hit to profits, with its tequila portfolio and Canadian whisky most affected.

The UK drinks company returned to sales growth in the latest half year, as strong performances for Guinness and tequila offset weakness in other spirits – but Donald Trump’s 25% tariffs on Canadian and Mexican imports could stop this recovery in its tracks, analysts said.

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Guinness boom prompts owner Diageo to consider sale or spin-off

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Stout, which has become fashionable with gen Z drinkers, likely to be valued at more than £8bn

The drinks company Diageo is considering cashing in on booming demand for pints of Guinness by selling or listing the famous beer brand on the stock market, according to reports.

Selling or spinning off Guinness are among the options being considered by the FTSE 100 company as part of a plan to revive its fortunes, according to Bloomberg which first reported the story.

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Drop in Latin American drinking prompts Diageo to issue profits warning

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Shares fall in world’s largest spririts company as consumers seek cheaper brands

The Guinness to Johnnie Walker drinks maker Diageo has issued a profit warning as a result of cash-strapped customers in Latin America and the Caribbean consuming less alcohol and seeking cheaper brands.

Shares in the world’s largest spirits company plunged more than 11% in early trading on Friday, making it the biggest faller in the FTSE 100, as investors worried that the trend in the region might spread to other markets.

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Diageo appoints Debra Crew as its first female chief executive

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Former chief operating officer to be one of fewer than 10 women leading FTSE 100 companies

The world’s biggest spirits maker, Diageo, has appointed Debra Crew as chief executive, one of few women to lead a FTSE 100 company.

The company, which makes well-known brands including Johnnie Walker scotch whisky, Guinness and Baileys, announced that Sir Ivan Menezes would step down on 30 June after 10 years as chief executive. It decided to promote Crew from chief operating officer to the top job, effective from 1 July.

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Government urged to ‘get a handle’ on supply chain crisis

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Chair of commission scrutinising post-Brexit trade deals says ministers must act now to get shelves stocked for Christmas

The government is being urged to “get a handle” on the supply chain crisis, as the chair of a cross-party commission created to scrutinise the UK’s post-Brexit trade deals said ministers need to act now to avoid empty shelves in the run-up to Christmas.

“Red tape and labour shortages from Brexit have exacerbated problems that are being acutely felt across production, processing, manufacturing, retail and of course logistics,” said Aodhán Connolly, who chaired an extraordinary session of the UK Trade and Business Commission, a group of cross-party MPs and business representatives set up as an independent adviser to government in April.

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Coronavirus: Lufthansa imposes hiring freeze as Diageo profits suffer

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Airline offers unpaid leave, beverage firm fears £200m hit and Danone also voices concern

Lufthansa has announced a hiring freeze and is offering employees unpaid leave as part of a range of cost-saving measures to attempt to limit the financial impact of the spread of the coronavirus.

The German airline, which has already cancelled all flights to China until the end of March, also said it will expand part-time work options and cancel flight attendant and other personnel training courses from April onwards. Those that are already on courses will not be hired. The company said it aimed to offer affected trainees “employment contracts in the long term”.

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