Diageo North America to axe 305 jobs

Kenya's High Court froze the sale of Diageo's stake in East African Breweries (EABL) to Asahi Group, pending regulatory reviews. The court ruled to maintain current ownership until appeals and CAK's review are complete, citing concerns over disclosure and minority shareholders. Diageo, EABL, and Asahi opposed the halt, arguing it could impact investor confidence. CAK is still reviewing the transaction.

Diageo (DEO) reported a 6% workforce reduction, part of CEO Dave Lewis' $1B cost-cutting plan. FY2026 revenue fell 2% to $19.6B, with operating profit down 27% to $3.2B. North American sales declined 8.4%, leading to a revised growth target. Diageo aims to invest savings in growth initiatives, including canned cocktails. Hedge fund holdings decreased but stake value increased.

FSSAI issued 150 notices to food companies, including Nestle India, PepsiCo, and Coca-Cola India, for misleading ads, false claims, and labeling violations. The regulator also took action against e-commerce platforms and food service establishments, suspending five Domino's licenses and canceling one Amazon warehouse license.

FSSAI lifted its ban on select Diageo products, including those from United Spirits' Baramati site and a third-party Madhya Pradesh plant. The regulator found compliance issues but revoked bans after engagement. Diageo denies misconduct and agrees to reformulate some products. FSSAI also confiscated 18,000 cases of Diageo's vodka and whisky over packaging concerns.

Diageo will reformulate whisky and rum brands in India after regulators banned products with added flavorings. The company agreed to remove added flavorings and clarify labeling. Affected brands include Royal Challenge and McDowell's No. 1 Celebration Matured XXX Rum. Diageo views India as a key growth market, with Royal Challenge selling 4.5 million cases annually.

Diageo's workforce fell by nearly 2,000 employees in the year ending June 2026, with average full-time employees dropping to 27,938. The company is implementing a $1.2bn restructuring plan to achieve $850m in savings over two years. Diageo reported a decline in net sales to $19.6bn, citing weakness in North America and Asia Pacific, despite growth in other regions. The company highlighted Guinness, Smirnoff RTD, and Johnnie Walker as strong performers.