Diageo’s £1.7bn East African Breweries sale halted by Kenyan court

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 North America will cut 305 jobs (36.3% of its NYC HQ staff) by 2027 as part of a restructuring to save $1B over 3 years. The company reported a 2% organic sales decline, with North America down 8.4%. CEO Sir Dave Lewis announced the plan after FY2026 results, which included 2,000 job cuts globally. Workers in the UK are voting on strike action over redundancy concerns.

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.