Diageo PLC

More than 100 workers at Diageo's Cameronbridge distillery, Europe's largest grain distillery, will walk out from Sept 28 for three weeks in a dispute over plans to cut 10 jobs at the site, threatening supplies of Johnnie Walker, Bell's and Haig whisky. The action could halt production at the factory, which makes the grain spirit used in blends for some of Diageo's best-known whiskies, and marks the first bout of strike action since Sir Dave Lewis announced a sweeping cost-cutting drive at the drinks giant. Sir Dave, nicknamed "Drastic Dave" for his aggressive approach to cutting costs, took over as Diageo's chief executive in January and is targeting $1bn (£750m) of savings; Diageo employed 27,938 people at the end of June, down by almost 2,000 from a year earlier, while it spent $514m on redundancy payments. Unite, the union overseeing the strike, accused Diageo of failing to consult workers properly, with general secretary Sharon Graham saying there is no justification for slashing hundreds of jobs across its operations when it is raking in hundreds of millions of profit. Diageo said the Cameronbridge dispute was limited to 10 roles, with eight people affected because two of the positions are vacant, and that the cuts were necessary because it had reduced production at the distillery and expected to maintain lower levels of grain distillation over the next few years.

A whisky war has broken out after English single malts were granted protected geographical indication status by the Government late on Friday, officially recognising them as a distinctive whisky category alongside Scotch, Welsh and Irish whiskies. The Scottish Whisky Association, which represents 90 companies including Glenmorangie, Johnnie Walker and Diageo, said it is "profoundly concerned" and is considering retaliation, with chief executive Mark Kent arguing the rules are "entirely inconsistent with the reputation of single malt whisky" because English single malt must be made on a single site but can use malt barley from different locations, whereas single malt Scotch must be made in one location with barley from the same site. England is now home to more than 70 whisky distilleries, up from 46 in 2023, exporting to more than 30 countries and estimated to be worth around £1bn, while Scotch whisky directly contributes more than £5bn a year to the Scottish economy. Tagore Ramoutar of the English Whisky Guild said he would defend any claim against the new status, and Andrew Nelstrop, owner of The English Distillery, called the SWA's response "baseless", noting English whisky has won world's best single malt three times in the last four years. Kevin Hollinrake, the MP for Thirsk and Malton, said there is plenty of room in the market for a growing English sector alongside Scotland's.

Diageo is cutting 305 roles at its North America headquarters as part of a cost-saving and turnaround plan under its recently appointed CEO, marking a material change in its largest market. The company, valued at £37.1 billion, produces and distributes alcoholic drinks globally, and this restructuring aims to reshape its operating model and support wider turnaround efforts. The move tests Diageo's premiumization narrative, which relies on premium brands and efficiency to drive growth and margins. While management sees streamlined assets and tighter execution as positives, analysts flag execution risks and potential constraints on brand investment if trading remains tough. Comparisons are drawn with peers Pernod Ricard and Brown-Forman.

Diageo has slashed its workforce by more than 6% as part of a cost-cutting blitz under new CEO Dave Lewis, with further layoffs expected by September 1. The company's annual report revealed an average of 27,938 full-time employees by the end of June, down from 29,860 a year earlier. The cuts are part of a program to lower operating costs by nearly $1 billion over three years, with savings earmarked for growth initiatives such as price reductions and expansion in canned cocktails and Guinness. Diageo's revenues fell 2% organically to $19.6 billion for the year ending June 30, while operating profits dropped 27% to $3.2 billion, hit by $900 million in restructuring charges and a $1.5 billion impairment in Turkey. The company also abandoned its medium-term growth target of 5% to 7% in favor of a low-single-digit outlook, as North American sales declined 8.4% in fiscal 2026.

Swellfun disclosed its 2026 semi-annual report on the evening of August 28. First-half revenue was 1.082 billion yuan, down 27.78 percent year on year, and net profit was a loss of 6.2225 million yuan, swinging from profit to loss compared with the same period last year. This is the company's first half-year loss in 12 years, since the first half of 2014. First-quarter revenue was 816 million yuan, with net profit attributable to the parent company of 171 million yuan. Second-quarter revenue was about 266 million yuan, with a net loss attributable to the parent company of about 177 million yuan. The overall first-half loss was mainly dragged down by the second quarter. The company said performance was affected by the proactive optimization of channel inventory structure and related phased factors. Channel inventory fell by about 50 percent year on year, but inventory still reached 4.082 billion yuan, accounting for nearly half of total assets, and inventory turnover days extended to about 2,785 days. On the personnel side, a round of streamlining was completed in 2025, with the total workforce reduced by a net 282 employees and one-off severance compensation of about 44 million yuan incurred. In 2026, the company is still continuing to shrink its headcount, and the core senior management team has been almost entirely replaced. Controlling shareholder Diageo is simultaneously advancing workforce reductions and has launched a restructuring plan totaling 1.2 billion US dollars, including 514 million US dollars in severance costs for Europe, corporate and other regions, an increase of more than seven times compared with the previous fiscal year. It also recorded asset impairments of 263 million US dollars for North America and Mexico and brand impairments of 1.5 billion US dollars. The final number of global layoffs has not yet been announced.

Diageo reduced its workforce by nearly 2,000 employees as part of a sweeping restructuring. The company reported an average of 27,938 full-time-equivalent employees in fiscal 2026, down from 29,860 a year earlier, a decline of 1,922 employees or roughly 6.4%. The London-based company is investing about $1.2 billion in a two-year restructuring plan, with roughly $1.1 billion tied to its new operating framework and $100 million to supply-chain changes. Diageo expects the overhaul to generate about $1 billion in savings and approximately $8 billion in cumulative free cash flow over fiscal 2027 through fiscal 2029. The company reported $19.64 billion in net sales for fiscal 2026, down 3% from the previous year, while net profit fell 22.9% to $1.96 billion.

Diageo has agreed to change the recipes of some of its spirits in India after the federal food safety regulator banned the sale of certain products. Two unnamed government sources told Reuters that the company will make alterations to some of its whisky and rum products, and the Food Safety and Standards Authority of India will drop its sales ban on this understanding. Earlier this month, the FSSAI banned sales of spirits made by companies including Diageo's Indian business United Spirits, claiming the products did not comply with rules on flavours and age-related claims. United Spirits had said it was taking the FSSAI to court over the ban on its McDowell's No. 1 rum. A Diageo spokesperson said the company has engaged with the FSSAI and taken appropriate measures to align its products fully with the revised requirements.

Diageo is reshaping its portfolio and investment priorities to restore sustainable growth after fiscal 2026 organic net sales fell 2% year over year, with North America down 8.4% and tequila declining about 21% amid weakness in Casamigos and Don Julio. Organic operating profit rose 2%, while Diageo Beer Company grew around 4% led by Guinness and Smirnoff RTD. The company plans roughly $1 billion in operating-framework and supply-chain savings to fund innovation and brand investment, and for fiscal 2027 expects broadly flat organic net sales with North America down mid-single digits and organic operating profit up low to mid-single digits. For fiscal 2027-2029, management targets low-single-digit organic sales CAGR, mid-single-digit organic operating profit growth, and cumulative free cash flow of $8 billion.

British spirits giant Diageo has argued in court that due process was not followed when a popular rum brand was banned from sale in India. Its subsidiary United Spirits contends that the food safety officer who issued the ban on McDowell's No.1 Celebration Matured XXX Rum, manufactured in Maharashtra, lacked legal authority and bypassed proper procedure by using a food analyst's report. India's food safety authority began industry consultations on flavouring label regulations after the ban, and Diageo argued that continuing the prohibition is premature and causes commercial harm. The Bombay High Court heard the matter on the 10th but declined immediate relief, directing the federal government to respond by August 19.

Diageo reported preliminary fiscal 2026 results with pre-exceptional earnings per share rising 0.7% year over year to 165.3 cents. Reported net sales declined 3% to $19.6 billion, while organic net sales fell 2%, pressured by an 8.4% organic net sales decline in North America, partly offset by growth in Europe, Latin America, and Africa. Organic operating profit increased 2%, helped by $540 million in savings from the Accelerate program, and free cash flow rose to $3.2 billion. The company recorded $1.5 billion in impairment charges and $0.9 billion in restructuring costs, and expects fiscal 2027 organic net sales to be broadly flat with North America organic net sales declining in the mid-single-digit range.

In his first quarter as CEO of Berkshire Hathaway, Greg Abel sold 15 stock positions that were originally initiated by Warren Buffett, signaling a willingness to chart his own course. The divested holdings included long-time winners like Visa, Mastercard, and Amazon, as well as recent underperformers such as Pool Corp., Diageo, and Domino's Pizza. Abel also made his biggest new buy in Alphabet, which pays only a 0.2% dividend, while exiting higher-yielding names like Lamar Advertising, Diageo, and Pool, suggesting less emphasis on dividend income. Berkshire's cash pile grew from $373.3 billion to $397.4 billion during the quarter, indicating a preference for building liquidity over chasing yield. The moves suggest Abel is not hesitant to sell either winners or losers if he does not foresee market-beating returns, though it remains to be seen whether this pace of change continues.

Diageo has put 172 distillery staff at risk of redundancy across its Scottish Highlands and Islands sites, with 38 jobs ultimately set to be cut as part of a global redundancy programme, according to union GMB Scotland. The union said a four-week consultation ended last week without agreement, accusing the spirits giant of rejecting alternatives to compulsory redundancies and ignoring the impact on rural communities. A Diageo spokesperson stated that no decisions have been made and that the company remains in consultation, with an update planned for its Capital Markets Day on 6 August. The affected distilleries include Cardhu, Port Ellen and Dufftown, and the union plans to write to local politicians warning of the economic impact on fragile rural economies.

Diageo is leaning on innovation to navigate a difficult industry backdrop as weak consumer confidence and macroeconomic uncertainty weigh on spirit demand. The company's organic net sales declined 2.8% in the first half of fiscal 2026, hurt by softness in North America and continued weakness in Chinese white spirits, prompting a lowered fiscal 2026 organic sales outlook to a decline of 2-3%. To defend market share, Diageo is expanding brand and pack offerings at more accessible price points and launching new flavors and formats, with Crown Royal Blackberry and Crown Royal Chocolate supporting U.S. performance and Johnnie Walker Black Ruby gaining traction across Asia Pacific, Latin America, and other markets. The spirits ready-to-drink portfolio delivered organic net sales growth of 17%, led by Smirnoff RTDs, while Guinness grew 10.9% and the non-alcoholic portfolio rose about 14%, supported by Guinness 0.0, Tanqueray 0.0, and Captain Morgan 0.0.

Diageo's Indian business unit, United Spirits, announced plans to close a manufacturing unit in Venkateshwara Nagara, India, by the end of August. The facility generated $63.1 million in revenues in the financial year 2025 to 2026, accounting for 2% of the company's revenue. The shutdown is part of a broader multiyear supply chain agility program approved in 2023 and responds to rising operational costs and changing market dynamics. United Spirits has also reached an agreement to sell a production site in the eastern state of Odisha to local business Cupid Breweries & Distilleries as it continues to reshape its manufacturing network in India.

Diageo is preparing a fresh round of cost-cutting that will include job losses, as chief executive Sir Dave Lewis seeks to reverse a prolonged slump in sales and profits at the Guinness and Johnnie Walker maker. The company has told executives to meet cost reduction targets by axing jobs and stripping out costs, though final numbers have not been determined, and its 30,000 global employees expect an internal announcement next week. A Diageo spokesman referred to February half-year comments about redesigning the operating framework and said the company will update shareholders at a Capital Markets Day on August 6. Sir Dave, who earned the nickname 'Drastic Dave' for cost-cutting at Unilever and later helped revive Tesco, has already halved the dividend and cut sales guidance since taking charge at the start of the year. Diageo's shares have lost more than half their value since peaking in 2022, and underlying sales and operating profits each fell 2.8% in the latest half, with particular weakness in the US spirits market.