Diageo, the parent company of brands like Smirnoff and Guinness, has withdrawn its medium-term sales projections, citing geopolitical and macroeconomic instability related to President Trump's tariff threats against Canada and Mexico. Despite a 1% organic sales growth to $10.9 billion in the last six months, the company's shares plummeted nearly 4% after the announcement. CEO Debra Crew indicated that the potential 25% tariffs could overshadow growth driven by popular brands like Crown Royal and Don Julio. Analysts have noted that although tequila sales surged, overall performance was tempered by weaknesses in other areas.
We are taking a number of actions to mitigate the impact and disruption to our business that tariffs may cause, and we will also continue to engage with the US administration on the broader impact that this will have on everyone supporting the US hospitality industry, including consumers, employees, distributors, restaurants, bars and other retail outlets.
Despite a return to growth for organic sales, which rose 1% to $10.9 billion, shares fell as much as 4% in London, reflecting the impact of geopolitical uncertainty.
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