Diageo reformulates Indian whiskies and rum after crackdown

Diageo, owner of brands like Guinness and Johnnie Walker, cut 2,000 jobs amid restructuring, with staff costs rising to $2.55bn. CEO Debra Lewis aims to reduce costs by $1bn over three years. Sales fell 2% to £19.6bn, with operating profit down 27.2% to $3.2bn. Guinness sales grew 12% globally, with plans to double production capacity.

Diageo, the world's largest alcoholic beverage company, is restructuring, cutting 2,000 employees and aiming for $1 billion in cost savings over three years. CEO Dave Lewis plans further job cuts, with analysts predicting 3,000-5,000 layoffs. The company reported a 27% drop in operating profit to $3.156 billion and a 3% decline in net sales to $19.643 billion for fiscal 2026. Investments will focus on mass-market brands and faster-growing markets like RTD canned cocktails.

Diageo's headcount fell 6% year-over-year to 27,938 by June 2026, as new CEO Dave Lewis leads a restructuring. The company plans $1 billion in savings, including job cuts and price reductions. Meanwhile, Kenya's competition regulator proposes a 15 billion shillings reserve for Diageo's sale of its EABL stake to Asahi, which Diageo disputes.

Diageo agreed with India’s food regulator FSSAI to change recipes for some whisky and rum products after the regulator banned certain sales over flavouring and age-claim compliance, according to Reuters sources. FSSAI said it would lift the ban if conditions are met. The dispute also involved United Spirits and other firms’ brands.

India’s FSSAI ordered a halt to sale of 10 alcohol variants from specific facilities of Diageo India’s United Spirits, Inbrew Beverages, and Mohan Rocky Springwater, citing lab findings of artificial flavouring to mimic rum/whisky and misleading age claims. The ministry said the issue is standards and labeling compliance. Affected products include Old Monk, McDowell’s No. 1 Rum, Antiquity Blue, Royal Challenge, Bagpiper Deluxe, and others.

Diageo agreed to reformulate key whisky and rum brands in India after FSSAI action, Reuters reported. The company will remove added whisky and rum flavorings from Antiquity Blue and Royal Challenge, and McDowell’s No. 1 Celebration Matured XXX Rum, and update front labels. The changes are set to apply nationwide, potentially easing state sales bans/restrictions.