Consumer
Diageo Removes Sales Growth Target as US Tariff Battle Looms
- UK distiller says tariff uncertainty makes forecasting complex
- Levies on Canada, Mexico would affect Diageo’s key US brands
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Diageo Plc scrapped a long-held sales target as the British distiller grapples with sluggish growth and a possible tariff battle in the US, its biggest market.
The maker of Johnnie Walker whisky has removed its medium term guidance of 5% to 7% organic net sales growth, blaming the economic and political uncertainty in many of its key markets. Threatened US tariffs on Mexico and Canada could “very well impact” Diageo’s momentum, especially its tequila and Canadian whisky brands, said Chief Executive Officer Debra Crew.