Diageo cuts guidance after reporting a weak quarter

Financial Performance - Diageo's net sales reached $49 billion, a 2% year-over-year decrease [2] - Organic sales remained flat, although better than analysts anticipated [2] - Sales in China decreased by more than 7% [3] - Organic sales in the US fell nearly 3% [3] Market Trends and Consumer Behavior - Consumers are trading down to cheaper alternatives, impacting premium tequila brands like Don Julio and Casamigos [3] - A clear shift down in quality consumption is observed as consumers tighten their wallets [4] - The premium spirits industry is experiencing a post-pandemic slowdown due to inflation, moderation trends, and tariffs [4] - Gen Z consumers are drinking less, influenced by fitness and health trends [6] - Economic worries affect Hispanic and non-Hispanic consumers, impacting beer sales [7] Company Outlook and Leadership - Diageo cut its guidance due to changing consumer behavior [4] - Investors are advised to await further guidance after the holiday season [5] - Diageo's CEO Deborah Crew left in July, and a replacement is yet to be named [5]