"This is not an easy decision to make, but we believe it is the right one. The North American market is challenged. Our portfolio needs some time and investment to make it more competitive. At the same time, we need to invest in our business, specifically in its capacity and capability."
"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."
"Lewis has joined London-based Diageo at a time when it is struggling with the impact of Donald Trump's tariffs, squeezed household finances and consumer shifts, amid the rise in use of GLP-1 weight loss jabs and lifestyle changes as many younger people choose to drink little or no alcohol."
Diageo, the world's largest spirits maker, announced significant financial challenges by slashing its dividend to 20 cents per share from 40.5 cents and cutting its annual sales and profit forecast for the second time in four months. New chief executive Dave Lewis, formerly of Tesco, cited weak demand in the US and China markets, capacity constraints affecting production, and the need for portfolio investment. The company faces headwinds from Donald Trump's tariffs, squeezed household finances, and shifting consumer behavior, including the rise of GLP-1 weight loss medications and reduced alcohol consumption among younger demographics. Lewis emphasized the difficult but necessary nature of the dividend reduction to fund business investment and improve competitiveness.
Read at www.theguardian.com
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