Diageo is facing weak demand in the United States and China, impacting sales. The new CEO, Dave Lewis, aims to reduce debt and drive growth. Sales in the US dropped by 9.3%, with tequilas declining over 23%. Diageo has lowered annual sales and profit forecasts and cut its dividend, citing ongoing challenges in the American and Chinese markets. Lewis acknowledged pressure from competition and consumer preferences for more affordable options. His focus is on debt reduction and growth amidst global uncertainties related to tariffs, slowing Chinese demand, and shifting consumer alcohol preferences. Lewis took over from Debra Crew, under whose leadership Diageo faced financial warnings and investor concerns. The company now projects a decline in 2026 organic sales and aims for stable or increased operating income. Sales dropped in the US, with tequila sales plummeting. The company declared a dividend of 20 cents per share, down from 40.5 cents last year, and set a minimum dividend of 50 cents annually.
