Diageo Cuts Dividend, Tackles Guinness Capacity Crunch in London
Diageo faces weak demand in the US and China, slashing dividend and forecasts. New CEO addresses Guinness supply issues in London pubs.
In a move that underscores the challenges facing the global spirits industry, Diageo, the world's largest drinks maker, has slashed its dividend and lowered its annual sales and profit forecast for the second time in four months. The company, which owns iconic brands like Smirnoff vodka, Johnnie Walker whisky, and Don Julio tequila, cited weak demand in key markets such as the US and China as the primary drivers behind the cuts.
The announcement comes as Diageo's new chief executive, Dave Lewis, takes the helm, inheriting a complex set of issues. One of the more pressing concerns is the capacity constraints affecting the company's flagship brand, Guinness, in London pubs. The iconic Irish stout, a staple in British drinking culture, has been struggling to meet demand in the capital, leaving some pub-goers thirsty for the black stuff.
Source: The Guardian
