DIAGEO, the global drinks giant behind Guinness and Johnnie Walker, is facing a tough year shaped by trade tariffs and shifting consumer trends.
Despite these challenges, Guinness continues to be a strong performer for the company.
The company now expects a $200 million annual hit from US tariffs introduced under President Trump, a jump from the $150 million impact it previously forecast.
Diageo says it can absorb around half of the blow through supply chain improvements and inventory management.
At the same time, profits have taken a hit.
Operating profit fell nearly 28% in the year to June, and shares have dropped more than 25% in 2025, making Diageo one of the FTSE 100’s worst performers.
The company also continues to feel the effects of changing drinking habits, with younger consumers drinking less and many switching to cheaper options amid economic pressures.
The departure of CEO Debra Crew last month has added to investor unease.
She stepped down after just over a year in the role, following a series of underwhelming results.
Nik Jhangiani, Diageo’s CFO, is serving as interim CEO and has expanded the company’s cost-saving plan from £500 million to £625 million over three years.
He stated the cuts won’t focus solely on reducing headcount.
Amid the turbulence, Guinness remains a bright spot.
UK sales rose 6.7%, although supply issues limited further gains.
Don Julio tequila and Crown Royal Blackberry have also shown strong demand.
Diageo expects organic sales growth to remain around 1.7%, matching last year’s performance.
The company is still searching for a permanent CEO to lead a turnaround as it faces mounting pressure to stabilise operations and restore shareholder confidence.
See More: Donald Trump, Guinness, Tariffs, US Trade Tariffs
