Diageo Reports First Sales Decline Since Pandemic, Yet Great Britain Sees Growth

Diageo, the multinational drinks company, has experienced a decline in global sales for the first time since the onset of the Covid pandemic. However, the company reported a 5% increase in sales within Great Britain, largely attributed to the rising popularity of Guinness and its variants, including an alcohol-free option and the innovative Nitrosurge home-pouring technology. Overall, Diageo's beer brands saw a significant 18% growth globally, with Guinness leading the charge, particularly in Great Britain and Ireland. Despite the positive performance of its beer segment, Diageo faced challenges in its spirits category, which saw a 1% decline across European markets. Following the release of these sales figures, Diageo's shares fell by 9%, reaching a four-year low. The company noted a 4% increase in marketing expenditure over the last fiscal year, focusing on tequila, beer, and the Johnnie Walker brand, as it sought to bolster its market presence amid economic pressures. In Europe, Diageo reported a 3% organic sales growth, driven by strong performances in Turkey and moderate growth in Great Britain and Ireland. The company acknowledged that economic challenges had led consumers to drink less and opt for cheaper alternatives. Diageo's CEO, Debra Crew, expressed confidence in the company's strategies to address regional issues and improve overall performance. In North America, however, sales declined by 2%, with a notable 5% drop in tequila sales as consumers reduced their alcohol consumption.