Diageo Says It's Making Progress in Tough North America Drinks Market
By Joshua Kirby
Spirits group Diageo said it is moving in the right direction in the challenged North America market, where sales continue to fall.
The maker of Smirnoff vodka, Johnnie Walker whisky and George Clooney's Casamigos tequila said Thursday that North America sales fell 3.6% on year over the July-September period, the first quarter of the company's fiscal year.
"In North America, we continue to focus on making our offer more competitive, and whilst this remains our biggest challenge, clear actions are underway," Chief Executive Dave Lewis said.
A drop in North America, the group's largest market by sales, was offset by organic growth in all other regions, including EMEA, Asia-Pacific and India. Total sales rose 1.4% on an organic basis to $4.93 billion over the quarter. Analysts had expected sales to lose 0.4% organically to $4.805 billion, according to an average of estimates compiled by the company ahead of the release.
Results in the first quarter "represent a small step in the right direction," Lewis said. The company backed its guidance for the full year, with organic sales expected to be flattish and operating profit to increase in the single digits, boosted by a cost-savings program.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
November 05, 2026 02:35 ET (07:35 GMT)
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