Group 1 - Diageo is considering divesting its Chinese assets, including shares in Shui Jing Fang, to streamline its asset portfolio [1] - The consideration is in the preliminary stage, and there is no final decision made yet, with no guarantee that Diageo will proceed with any transaction [1] - Representatives from Diageo, Goldman Sachs, and UBS declined to comment on the matter [1] Group 2 - A representative from Shui Jing Fang stated that the company has not received any information regarding the transfer of equity [1] - As of the time of reporting, there was no response from Shui Jing Fang to inquiries made by Sina Finance's "Wine Industry Reference" [1]

Core Viewpoint - Diageo is facing significant growth pressures, with declining organic net sales and operating profits, prompting a leadership change as Dave Lewis takes over as CEO to implement cost-cutting and improve profitability [3][4][6]. Financial Performance - In the fiscal year 2024, Diageo's organic net sales decreased by 0.6% year-on-year, and organic operating profit fell by 5% [3]. - For fiscal year 2025, organic net sales saw a slight increase of 1.7%, but organic operating profit still declined by 0.7% [3]. - The first quarter of fiscal year 2026 reported flat organic net sales year-on-year, with weak demand in the Chinese baijiu and U.S. spirits markets cited as major factors [3][11]. Leadership Changes - Debra Crew, the previous CEO, left in July 2025 after two years, with CFO Nik Jhangiani serving as interim CEO until Dave Lewis's appointment [4][6]. - Lewis is recognized for his experience in cost reduction and business transformation, having previously restructured Tesco during a crisis [6][7]. Strategic Initiatives - Diageo plans to cut approximately $625 million in costs over the next three years, with asset disposals being a key strategy since 2025 [7][8]. - The company has been actively selling non-core assets, including stakes in various breweries and brands, to streamline operations [8][11]. Market Challenges - The Asia-Pacific region saw a 7.5% decline in organic net sales in the first quarter of fiscal year 2026, primarily due to weak performance in the Chinese baijiu market, which negatively impacted overall group sales by about 2.5% [11]. - Management emphasizes the need to adapt to changing consumer preferences regarding drinking habits and expectations, indicating a shift in strategic focus [11].

Core Viewpoint - Diageo has appointed Dave Lewis as the new CEO to navigate the company through current challenges in the global alcohol market, following a significant decline in profits and stock prices [2][4][12]. Leadership Transition - Dave Lewis, aged 60, was appointed by Diageo's board in November last year and officially took over on January 1, 2026, succeeding Debra Crew, the first female CEO, who left after two years [2][4]. - Lewis has a 27-year history at Unilever and over six years as CEO of Tesco, known for aggressive cost-cutting measures [2][4][12]. Current Financial Performance - Diageo's net sales for the fiscal year 2025 remained above $20 billion, but net profit fell sharply by 39.1% year-on-year [4][9]. - In Q1 of fiscal year 2026, net sales dropped by 2.2%, attributed to weak performance in the U.S. and declines in the Chinese market [4][9]. - The company's stock price has decreased by nearly 60% from its peak in 2021, returning to levels seen in 2012 [4][9]. Cost-Cutting Strategy - Diageo has initiated a cost-saving plan aiming for $500 million in savings by 2028, which includes asset sales and operational cutbacks [10][12]. - The company has sold various assets, including stakes in breweries and brands, to streamline operations and reduce debt [10][11]. Market Challenges - The global alcohol market is facing a downturn post-pandemic, compounded by U.S. tariffs on European alcoholic products, affecting Diageo's growth prospects [9][10]. - Diageo's performance is better than some competitors, but market sentiment remains negative, leading to stock price declines [9][10]. Strategic Focus in China - Diageo's operations in China are divided into international spirits and local baijiu, with a focus on adapting to changing consumer preferences [16][19]. - The company is targeting younger consumers and promoting smaller packaging to align with trends towards home consumption [19]. - However, the baijiu segment has faced significant challenges, with sales and net revenue declining sharply [19][20]. Future Outlook - Lewis is expected to continue the cost-cutting approach while also identifying growth opportunities within Diageo's strong brand portfolio, which includes over 200 brands [15][19]. - The future of Diageo's baijiu business, particularly the Water Margin brand, remains uncertain amid ongoing asset sales and market challenges [20][24].

Core Viewpoint - A Kenyan beer distribution firm is attempting to block Diageo's $2.3 billion sale of its local subsidiary EABL to Japan's Asahi Holdings due to ongoing litigation [1] Group 1 - The Kenyan beer distribution firm has filed a case at Kenya's High Court [1] - The case is aimed at preventing the sale of EABL, which is a subsidiary of Diageo [1] - The sale is valued at $2.3 billion [1] Group 2 - The litigation is cited as the reason for the attempt to block the sale [1] - Asahi Holdings is the prospective buyer of EABL [1]

Core Insights - The 12th edition of World Class India by Diageo is expanding to include bartenders from South Asia, reflecting the rapid diversification of India's cocktail culture [1][7] - The role of bartenders in India has evolved significantly, with a focus on ingredient-led menus and disciplined service, matching global standards [3] - World Class India emphasizes education, mentorship, and flavour-led thinking, moving away from spectacle to enhance the quality of bar experiences [5][10] Industry Developments - The bar scene in India is increasingly shaped by neighbourhood cocktail spots and bartender-owned spaces, focusing on flavour clarity and guest experiences [1] - The programme aims to create common standards and global recognition for Indian bartenders, helping them gain visibility and acknowledgment [4][10] - The 2026 edition includes an extensive roadshow across 11 cities, engaging bartenders through hands-on workshops and discussions [8] Company Initiatives - Diageo India is committed to improving the bar culture by providing training and exposure through the World Class programme, which translates competition experiences into higher-quality consumer experiences [10] - The programme is shaped by its alumni, with past winners returning as mentors, fostering a cycle of knowledge and skill development within local bar ecosystems [6] - Diageo India operates one of the largest manufacturing footprints in alcobev in India, with a focus on sustainability and responsible consumption [12]

Core Insights - The "High Income DIY Portfolios" service aims to provide high income with low risk and capital preservation for DIY investors, particularly targeting income investors such as retirees [1] - The service offers a total of 10 model portfolios, including various strategies for income generation and risk management, with a focus on sustainable yields [2] Group 1: Portfolio Strategies - The service includes seven portfolios: three buy-and-hold, three rotational portfolios, and a conservative NPP strategy portfolio designed for low drawdowns and high growth [1] - The investment approach emphasizes dividend-growing stocks and aims for a 30% reduction in drawdowns while targeting a 6% current income [2] Group 2: Additional Features - The service provides buy and sell alerts, live chat, and strategies for portfolio management and asset allocation to help investors achieve stable, long-term passive income [2]

Core Insights - The beverage industry is experiencing significant mergers and acquisitions, with notable deals including PepsiCo's acquisition of Poppi for $1.95 billion and Celsius Holdings' purchase of Alani Nutrition for $1.8 billion [2] - Diageo is actively offloading assets, including the sale of Cacique rum for $81 million and its stake in Guinness Ghana Breweries [5][10] - Emerging markets are becoming a focal point for major beverage companies, as seen in Coca-Cola HBC's acquisition of a majority stake in Coca-Cola Beverages Africa for $2.6 billion [20] Group 1: Major Acquisitions - PepsiCo announced the acquisition of Poppi, a prebiotic soda brand, for $1.95 billion, highlighting the growing market for healthier beverage options [2] - Keystone Brewing Group acquired North Brewing for £71 million ($88.3 million) as part of a strategic partnership [3] - Molson Coors Beverage Co. acquired an 8.5% stake in Fevertree Drinks, a UK-based tonic and mixer maker [4] Group 2: Industry Trends - The beverage industry is seeing a trend of portfolio pruning, with companies like Diageo and Campari selling off non-core assets to focus on brands with stronger growth potential [6][11] - Diageo's CFO indicated plans for substantial changes to its product portfolio, aiming to save around $500 million in costs over three years [10] - The trend of vertical integration is evident, as NewPrinces acquired Carrefour's operations in Italy to enhance production and distribution [12] Group 3: Emerging Markets Focus - Coca-Cola HBC's acquisition of Coca-Cola Beverages Africa will create the world's second-largest Coke bottler, expanding its operations into 14 new African markets [20] - The acquisition of Alani Nutrition by Celsius Holdings reflects a growing interest in energy drinks and functional beverages in the US market [2] - The sale of Diageo's business in Kenya to Asahi Group Holdings for $2.3 billion underscores the strategic focus on emerging markets [25]

Core Viewpoint - The Artisan Value Fund's third-quarter 2025 performance was negatively impacted by stock selection, particularly in the consumer staples sector, despite a broader equity market rally driven by strong corporate earnings and economic support measures [1][3]. Group 1: Fund Performance - The Artisan Value Fund's Investor Class ARTLX, Advisor Class APDLX, and Institutional Class APHLX returned 0.83%, 0.91%, and 0.90% respectively in Q3 2025 [1]. - The Russell 1000 Value Index had a return of 5.33% during the same period, indicating underperformance by the Artisan Value Fund [1]. Group 2: Stock Highlights - Diageo plc (NYSE:DEO) was highlighted in the fund's investor letter, with a one-month return of -6.53% and a 52-week loss of 31.87% [2]. - As of December 26, 2025, Diageo plc's stock closed at $86.32 per share, with a market capitalization of $47.74 billion [2]. Group 3: Sector Performance - The consumer staples sector was identified as the biggest source of underperformance for the Artisan Value Fund, with notable laggards including Diageo plc, Kerry Group, and Philip Morris International [3].

Core Viewpoint - Diageo plc is facing growth pressures, leading to a reduction in its price target by Morgan Stanley, while the company is actively divesting assets to improve its balance sheet [2][3][6]. Group 1: Financial Adjustments - Morgan Stanley has lowered its price target for Diageo to 1,530 GBp from 1,595 GBp, maintaining an Underweight rating on the shares [2]. - Diageo is selling its 65% stake in East African Breweries Limited to Asahi for approximately $2.3 billion, which is part of its strategy to reduce debt [3][4]. - The deal values East African Breweries at $4.8 billion and is expected to decrease Diageo's net debt-to-earnings ratio by about 0.25 times, addressing the company's leverage issues [4]. Group 2: Strategic Moves - The asset sale to Asahi includes $2.35 billion for Diageo's full stake in Diageo Kenya and $646 million for a 53.8% stake in UDVK, reflecting a significant divestment strategy [5]. - Interim CEO Nik Jhangiani has indicated that significant divestments are necessary to alleviate balance sheet pressures, particularly in light of weaker alcohol demand and external trade tariffs [6]. Group 3: Market Presence - Despite the divestment, Diageo will maintain a presence in the Kenyan market through a licensing arrangement with East African Breweries Limited, ensuring continued commercial ties [4]. - Diageo produces and distributes a wide range of alcoholic beverages, including well-known brands such as Johnnie Walker and Crown Royal [6].

Group 1 - Diageo plc (NYSE:DEO) is facing challenges in its business lines, with a noted decline in performance across various segments [1][2] - The company offers a dividend yield of 5.6%, which may provide some support for the stock price despite the overall business struggles [1] - There is a growing trend among consumers, particularly younger generations, towards health and wellness, which negatively impacts alcohol consumption [2] Group 2 - The competitive landscape for alcoholic beverages is intensifying, with alternatives like gummies gaining popularity, leading to a preference shift away from traditional alcohol products [2] - Comparatively, certain AI stocks are perceived to have greater upside potential and lower downside risk than Diageo, indicating a shift in investment focus [2]