$DEO

Diageo's $2.3B sale of its 65% stake in East African Breweries (EAB) to Asahi is paused by Kenya's High Court due to ongoing litigation. The court cited potential constitutional issues and pending regulatory reviews. Diageo and Asahi opposed the halt, arguing it could impact investor confidence. The delay adds pressure on Diageo's debt reduction plans.

Diageo, the world's largest spirits company, announced a new strategy to revive growth, including job cuts, a focus on ready-to-drink (RTD) products, and a shift away from premiumization. The plan was revealed alongside full-year results showing a 2% sales decline. CEO Sir Dave Lewis predicts flat growth in the near term, followed by low single-digit growth annually until 2029. Analysts have mixed views on the strategy, with some praising its disciplined approach and others expressing concerns a

Diageo plans to cut 305 jobs at its North American HQ, citing economic reasons. The company reported a 3% decline in net sales to $19.64bn for the year ending June 30, with North America seeing an 8.4% organic sales drop. CEO Sir Dave Lewis aims for $1bn in savings over three years, with $850m from restructuring.

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.

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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.

Diageo plans to cut jobs at its Cameronbridge distillery, affecting over 70 roles. Unite union members are voting on strike action, citing lack of consultation and safety concerns. Diageo says the cuts are to maintain long-term competitiveness and offers alternative roles. The distillery produces whisky and other spirits for brands like Johnnie Walker and Smirnoff.

Diageo plans to cut hundreds of jobs in Scotland, including 70+ at its Cameronbridge distillery. Workers may strike. Unite the Union criticizes the lack of consultation. Diageo cites long-term competitiveness. The company reported £595m profit in 2025.

RBC Capital Markets maintained an 'Outperform' rating and £20 price target for Diageo (LSE:DGE), backing its turnaround plan. RBC expects cost savings to offset margin pressures, with EBIT margin increasing to 230 basis points by 2029. Organic sales growth is forecast to improve, and net debt to EBITDA is expected to decrease. The broker highlights the importance of improving return on invested capital for share performance.