BANGALORE, India, Nov. 21, 2025 /PRNewswire/ -- The Good Craft Co. (TGCC) by Diageo India is wrapping up its first year with an award for Excellence in Creating a World-Class Platform to Promote Indian Craft Spirits at ProWine Mumbai 2025, India’s leading international trade fair for wine, spirits, and craft beverages.Held on October 31 to November 1, this was the fifth edition of ProWine Mumbai, which brought together producers, importers, distributors, bartenders, and hospitality professionals from across ...

An updated edition of the Sept. 26, 2025, article.Investing in the stock market often brings to mind themes of growth, innovation, and long-term value creation, but beneath the surface lies a niche segment that has historically delivered outsized returns: sin stocks. These are companies operating in industries often considered socially or morally controversial, including alcohol, tobacco, gambling, weapons manufacturing, and, at times, cannabis. Despite their reputational baggage, sin stocks tend to benefit ...

This stock offers a 4% forward dividend yield and could be significantly undervalued.Warren Buffett's Berkshire Hathaway ended the third quarter with a $283 billion stock portfolio comprising several quality companies that pay dividends. Berkshire held 10 stocks with dividend yields that were at least twice the average yield of the S&P 500.If I were to buy one high-yielding dividend stock from Berkshire's portfolio, it would be Diageo (DEO 2.66%). This alcohol beverage powerhouse appears significantly under ...

Company Overview - Diageo plc (NYSE:DEO) is an alcoholic beverage company known for brands such as Johnnie Walker and Smirnoff [2] - The company is facing challenges as younger consumers are drinking less, indicating a secular shift in the alcoholic beverages industry [2] Performance Insights - Jim Cramer highlighted that Diageo's organic growth is currently at minus 7.5%, which is a significant decline [3] - Cramer has previously described Diageo as a "horrendous stock" and expressed a preference for other investment opportunities over Diageo [2][3] Market Trends - There is a notable decrease in alcohol consumption in both the US and China, which is impacting Diageo's performance [3] - The overall sentiment in the market suggests that some AI stocks may offer better investment potential compared to Diageo [3]

Core Insights - The 2026 World Class U.S. program, starting on November 12, 2025, marks a new chapter focused on education, community, and the future of hospitality [1][4] - DIAGEO North America and Tales of the Cocktail Foundation are collaborating to evolve the World Class U.S. program into a year-round initiative aimed at empowering bartenders through professional development and community engagement [2][3] Program Details - Applications for the 2026 competition will open on November 12, 2025, allowing bartenders of all levels to compete for the title of 2026 U.S. Bartender of the Year and a chance to represent the U.S. at the global finals in Dubai [4][13] - The partnership will introduce mentorship opportunities, expanded participation roles, and workshops designed to foster community among bartenders [3][5] Event Highlights - Each of the Top 15 finalists will receive a VIP pass to Tales Of The Cocktail 2026, which includes immersive tastings and expert-led education [5] - Key dates for the competition include application submission by January 12, 2026, announcement of the Top 100 in early March, and the national finals in Spring 2026 [13] Organizational Background - Tales of the Cocktail Foundation is a non-profit organization dedicated to empowering the hospitality industry through education and community support, hosting an annual conference in New Orleans [8] - DIAGEO is a global leader in beverage alcohol, with a diverse portfolio of brands sold in over 180 countries [9]

Core Viewpoint - Diageo has appointed Sir Dave Lewis as the new CEO, concluding the search for a successor after Debra Crew's departure in July. Lewis will officially take on the role in January 2026, with interim CEO Nik Jhangiani leading the company through December [1][2]. Leadership Changes - Sir Dave Lewis, former CEO of Tesco, has extensive experience in leading major brands and will bring his leadership skills to Diageo. He has also chaired Haleon and serves as a non-executive director at PepsiCo [2][3]. - Deirdre Mahlan will continue to support the transition as interim CFO, having returned to the role in July [2]. Market Outlook - Lewis acknowledges the challenges in the market but also sees significant opportunities for Diageo. He aims to work with the team to create shareholder value [3][4]. - Diageo recently revised its sales and profit guidance, expecting organic net sales growth to be flat to slightly down, influenced by the Chinese white spirits market and a weaker US consumer environment [4][5]. Financial Performance - For the fiscal first quarter, Diageo reported flat organic net sales, with a 2.2% decline on a reported basis to $4.9 billion. The North America business saw a 2.7% decline in organic net sales, amounting to $1.84 billion, impacted by a challenging consumer goods environment [5][6].

Financial Data and Key Metrics Changes - In Q1, organic net sales were flat, with reported net sales of $4.9 billion down 2.2% year-over-year, primarily impacted by the disposal of Guinness Nigeria and the Shiraz North America transaction [8][9] - Organic volume growth was 2.9%, offset by a negative price mix of 2.8%, largely due to the adverse impact of Chinese white spirits [8][9] - The company updated its fiscal guidance, now expecting organic net sales growth to be flat to slightly down for the fiscal year, with organic operating profit growth projected in the low to mid-single-digit range [15][17] Business Line Data and Key Metrics Changes - North America saw organic net sales decline by 2.7%, with U.S. spirits down 4.1%, while Diageo Beer Company grew by 9.2% [9][10] - Europe experienced organic net sales growth of 3.5%, driven by strong performance in Guinness Draught and spirits, particularly in Turkey and the Middle East [10][11] - Asia-Pacific faced a 7.5% decline in organic net sales, primarily due to reduced consumption of Chinese white spirits, which negatively impacted regional sales by approximately 13% [10][11] Market Data and Key Metrics Changes - In LAC, organic net sales grew by 10.9%, led by strong performance in Brazil, while Africa reported 8.9% organic sales growth, with broad growth across East Africa and Southwest and Central Africa [11][12] - The tequila category in North America is experiencing increased competitive pressure, with a decline in overall category growth from 10% in 2023 to just under 3% [32][35] - The company noted a shift in consumer behavior, with consumers trading down from super premium to premium products, impacting sales of Don Julio and Casamigos [35][36] Company Strategy and Development Direction - The company is advancing its "Accelerate" program to strengthen its foundations for long-term sustainable growth, with a focus on cost efficiency and process simplification [12][18] - Management is committed to improving operating leverage and enhancing commercial execution, particularly in key markets [13][15] - The company is exploring selective disposals of non-core assets to focus on growth opportunities in RTDs and brand activation during major events like FIFA 2026 [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed concern over current performance, particularly in North America, and emphasized the need for urgent actions to drive growth [5][6] - The economic environment is weighing on consumer sentiment, leading to weaker-than-expected results in the U.S. [9][15] - Despite challenges, management remains confident in delivering $3 billion in free cash flow for fiscal 2026, supported by ongoing initiatives [12][17] Other Important Information - The company is implementing a clearer decision-making framework to enhance speed and agility in operations [14][15] - Management highlighted the importance of maintaining brand equity while optimizing marketing spend across different markets [56][59] Q&A Session Summary Question: Insights on U.S. spirits performance and guidance - Management acknowledged the complexity of U.S. spirits performance, noting a decline in depletions and the impact of tariff-related pre-buys [21][22] Question: Competitive pressure in the tequila market - Management discussed increased competition in the tequila category, emphasizing the need for strategic interventions to improve performance [31][32] Question: EBIT guidance and margin support - Management expressed confidence in achieving low to mid-single-digit EBIT growth despite market challenges, citing cost efficiencies and stronger whiskey performance [45][47] Question: Impact of A&P reductions - Management clarified that A&P reductions in GB were part of a broader strategy to optimize marketing spend while maintaining brand equity [55][56] Question: Accelerate program details - Management provided insights into the Accelerate program, highlighting its role in driving efficiencies and improving resource allocation [63][66]

Financial Data and Key Metrics Changes - In Q1, organic net sales were flat, with reported net sales of $4.9 billion down 2.2% year-over-year, primarily due to the disposal of Guinness Nigeria and the Shiraz North America transaction [5][8][9] - Organic volume growth was 2.9%, offset by a negative price mix of 2.8%, largely due to the impact of Chinese white spirits [8][9] - The company updated its fiscal guidance, now expecting organic net sales growth to be flat to slightly down for the fiscal year, with organic operating profit growth projected in the low to mid-single-digit range [15][17] Business Line Data and Key Metrics Changes - North America saw organic net sales decline by 2.7%, with U.S. spirits down 4.1%, while Diageo Beer Company grew by 9.2% [9][10] - Europe experienced organic net sales growth of 3.5%, driven by strong performance in Guinness Draft and spirits, particularly in Turkey and the Middle East [10][11] - Asia-Pacific reported a 7.5% decline in organic net sales, primarily due to reduced consumption of Chinese white spirits [10][11] Market Data and Key Metrics Changes - In North America, the tequila category faced increased competitive pressure, leading to a decline in sales, while Scotch and ready-to-drink products showed strong growth [9][10][32] - Latin America (LAC) reported a robust organic net sales growth of 10.9%, led by double-digit growth in Brazil [11] - Africa saw organic sales growth of 8.9%, with broad growth across East Africa and Southwest and Central Africa [11] Company Strategy and Development Direction - The company is advancing its "Accelerate" program to strengthen its foundations for long-term sustainable growth, with a focus on cost efficiency and commercial execution [12][19] - There is a clear strategy to improve operating leverage and enhance decision-making frameworks across the organization [14][15] - The company is committed to returning to its target leverage ratio range of 2.5-3 times by fiscal 2028, supported by selective disposals [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging operating environment, particularly in the U.S. and Asia-Pacific, and emphasized the need for urgency in driving growth [5][6] - The management expressed confidence in achieving $3 billion in free cash flow for fiscal 2026, supported by ongoing cost management initiatives [12][17] - There is a focus on adapting to changing consumer preferences, particularly in the spirits category, and leveraging opportunities in ready-to-drink products [19][84] Other Important Information - The company is experiencing a shift in consumer behavior, with a trend towards smaller sizes and lower-priced products, particularly in the tequila category [32][36] - The management is actively addressing legal challenges related to tequila credentials, ensuring consumer confidence in product quality [43] Q&A Session Summary Question: Insights on U.S. spirits performance and guidance - Management noted that U.S. spirits declined 4.1% in Q1, with some benefits from tariff pull-forwards and highlighted the need to monitor consumer takeoff closely [21][22][23] Question: Competitive pressure in the tequila market - Management acknowledged increased competition in the tequila category and discussed strategies to improve performance for brands like Don Julio and Casamigos [31][32][34] Question: EBIT guidance and margin support - Management expressed confidence in achieving low to mid-single-digit EBIT growth despite challenges, citing cost efficiencies and stronger whiskey performance as key factors [46][48][49] Question: A&P spend reduction and efficiency - Management clarified that A&P development spend was reduced by optimizing agency use and reallocating resources for better returns [57][58][61] Question: Accelerate program and savings - Management confirmed that 40% of the savings from the Accelerate program would be delivered this fiscal year, emphasizing the importance of effective resource allocation [65][66][68]

Financial Data and Key Metrics Changes - In Q1, organic net sales were flat, with reported net sales of $4.9 billion down 2.2% year-over-year, primarily impacted by the disposal of Guinness Nigeria and the Shiraz North America transaction [6][7][10] - Organic volume growth was 2.9%, offset by a negative price mix of 2.8%, largely due to the adverse impact of Chinese white spirits [6][10] - The company updated its fiscal guidance, now expecting organic net sales growth to be flat to slightly down for the fiscal year, with organic operating profit growth projected in the low to mid-single-digit range [13][16] Business Line Data and Key Metrics Changes - North America saw organic net sales decline by 2.7%, with U.S. spirits down 4.1%, while Diageo Beer Company grew by 9.2% [7][10] - Europe experienced organic net sales growth of 3.5%, driven by strong performance in Guinness Draft and spirits, particularly in Turkey and the Middle East [9][10] - In Asia-Pacific, organic net sales declined by 7.5%, significantly affected by the downturn in Chinese white spirits, which impacted regional net sales by approximately 13% [9][10] Market Data and Key Metrics Changes - Latin America and Caribbean (LAC) reported organic net sales growth of 10.9%, led by strong performance in Brazil [10] - Africa showed organic sales growth of 8.9%, with broad growth across East Africa and Southwest and Central Africa [10] - The tequila category in North America faced increased competitive pressure, leading to a decline in overall performance [29][30] Company Strategy and Development Direction - The company is focused on sharpening its strategy and implementing initiatives to drive growth across its portfolio, particularly through the Accelerate program [5][11] - There is an emphasis on improving commercial execution and optimizing trade spend, with a commitment to delivering $3 billion in free cash flow for fiscal 2026 [11][16] - The company is also exploring selective disposals of non-core assets to enhance focus on core growth areas [17] Management's Comments on Operating Environment and Future Outlook - Management expressed concern over the current performance, particularly in North America, and acknowledged the need for urgent actions to drive growth [4][5] - The economic environment is weighing on consumer sentiment, leading to a cautious outlook for the U.S. market [7][10] - Management remains confident in the long-term growth potential of the portfolio, particularly in RTDs and Guinness [17][18] Other Important Information - The company is making progress on cost efficiency and process simplification, which are expected to contribute positively to margins [11][48] - The impact of foreign exchange on reported sales was negligible during the quarter [6] - The company is committed to returning to its target leverage ratio range of 2.5-3 times by fiscal 2028 [16] Q&A Session Summary Question: Insights on U.S. market performance and guidance - Management acknowledged the complexities in the U.S. market, noting that net sales were ahead of depletions, with depletion NSV down about 7% [20][22] - The impact of tariff pre-buying and seasonality was discussed, with management indicating that the unwinding of these factors would not be material in Q2 [24][25] Question: Competitive pressure in the tequila category - Management highlighted increased competitive pressure in the tequila category, with consumers trading down and shifting preferences impacting performance [28][30] - The company is focusing on its portfolio, particularly Don Julio and Casamigos, to adapt to changing consumer behaviors [30][32] Question: EBIT guidance and margin support - Management expressed confidence in delivering low to mid-single-digit EBIT growth despite challenges, citing cost discipline and operational efficiencies as key factors [44][46] - Input costs, particularly for agave, were noted but not seen as a major factor in efficiencies [51][52] Question: A&P spend reduction and efficiency - Management clarified that A&P development spend was reduced by optimizing agency use and reallocating resources for better returns [56][58] - The focus remains on maintaining brand equity while improving marketing efficiency across markets [58][59] Question: Details on the Accelerate program - Management provided insights into the Accelerate program, emphasizing its role in driving savings and improving operational effectiveness [61][64] - The program aims to enhance decision-making speed and resource allocation across the organization [64][65] Question: Margin and operating leverage - Management confirmed that 40% of savings from the Accelerate program would be realized this year, ahead of previous guidance [69][70] - The impact of depletions and consumer behavior in North America was discussed, with management indicating that these factors would be managed throughout the year [71][74]

Core Insights - The global beer, wine, and spirits industry has experienced a significant decline, with a total market value loss of $830 billion over the past four years, representing a 46% drop from its peak in June 2021 [1][2]. Industry Challenges - Shifting drinking patterns and rising health concerns are negatively impacting earnings, alongside external factors such as US tariffs, high interest rates affecting consumer spending, and elevated commodity prices [2][3]. - In China, weak household confidence and a ban on alcohol for official functions have further contributed to the industry's downturn [2][4]. Company Performance - Major companies like Diageo, Pernod Ricard, and Remy Cointreau have seen their stock prices hit decade-low levels, while Kweichow Moutai is trading over 40% below its 2021 high [4][5]. - The industry is facing pressure not only from declining revenues but also from high levels of debt and management turnover as companies adapt to changing market dynamics [5]. Changing Consumer Behavior - A Gallup survey indicates that US alcohol consumption has reached its lowest level since 1939, influenced by health warnings from organizations like the World Health Organization and changing preferences among younger generations [6][8]. - The trend of celebrities promoting non-alcoholic beverages and the rise of alternatives such as cannabis and weight-loss drugs are further impacting traditional alcohol sales [7][8].