Last orders called for Diageo’s growth target

Drinks Giant Diageo is under pressure to cut its growth targets as cash -loaded and health -conscious drinkers turn away from alcohol.

It comes as the owner of Johnnie Walker Whiskey and Guinness Stout reveals half -year results this week. Diageo’s shares have been weakening on a five-year low after a profit warning.

Veteran Fund Manager Terry Smith recently dumped his efforts and said that weight loss medicine could hit the demand for his products.

He also raised concerns about Diageo’s new management team, led by CEO Debra Crew, who took over in June 2023.

Pharmaceutical manufacturers are investigating whether Jabs like Ozempic could be used to cut alcohol consumption and treat addiction.

To add the sector’s evil, the top doctor in the US wants alcoholic beverages to bear warnings that ingestion of them can cause cancer.

Under pressure: Johnnie Walker Whiskey and Guinness Stout Owner is set to reveal half -year results

Diageo’s target for annual sales growth of between 5 and 7 percent has been in place since 2021.

But revenue actually fell last year, and analysts at JP Morgan Cazenove notice that Diageo has delivered 5 percent or more growth in just eight of the past 20 years.

Diageo is also in danger of US President Donald Trump’s decision to beat a 25 percent duty on all imports from Mexico and Canada starting this weekend.

Canadian whiskey and Mexican Tequila imported into the US account for a tenth of Diageo’s sales and profits. JP Morgan Chase expects Diageo to raise prices with a fifth to equalize Hit to earnings if customs are introduced.

Diageo has also been affected by supply problems, with some pubs running out of Guinness.

The company has denied reports that the Stout mark or its 34 percent share in Moet-Hennessy is for sale.

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