Diageo slashes dividend and vows to address Guinness capacity constraints in London

The Guardian - World NewsEN 2 min read 100% complete by Joanna PartridgeFebruary 25, 2026 at 11:44 AM

AI Summary

medium article 2 min

Diageo, the world's largest spirits maker, has slashed its dividend and cut its annual sales and profit forecast for the second time in four months. The company reported weak demand in the US and China under new CEO Dave Lewis, who took over in January. Lewis described his first seven weeks as "pretty intense" and said reducing the dividend was a necessary move to invest in the business and address capacity constraints affecting Guinness sales in London pubs. Diageo expects organic sales to fall between 2% and 3% in 2026, while its organic operating profit is forecast to remain flat. The company's shares fell by 6% during early trading on Wednesday due to Lewis's appointment last November. Lewis attributed the decline to a squeeze on disposable income as consumers choose fewer drinks per occasion.

Key Entities & Roles

Key Player Opposition Context

FTSE 100 30% Unilever 40% Tesco 40% China 40% Donald Trump 40% Debra Crew 40% United States 50% London ×260% Guinness 70% Dave Lewis ×680% Diageo ×790%

Keywords

diageo 100% dividend cut 90% dave lewis 90% guinness capacity constraints 80% sales forecast 70% financial performance 70% consumer spending 60% spirits maker 60% glp-1 drugs 50%