Latest news with #DebraCrew
Irish Times
27-05-2025
- Business
- Irish Times
Glass half full for Guinness, half empty for Diageo
Guinness is fizzing. The black stuff enjoyed 17 per cent sales growth in the latest half-year, marking its eighth consecutive double-digit rise. It's now the top beverage brand in Ireland, the top beer in Britain, and growing fast in the US. Guinness still has just 1 per cent of the US beer market, but Bank of America sees big growth potential, pointing to its dominance in New York and Boston and scope for a UK-style lift worth $500 million (€440 million). READ MORE Unfortunately for Diageo , the rest of the drinks cabinet is less effervescent. The group missed earnings expectations, scrapped its long-standing growth target, and is still recovering from a stock shock in Latin America. Scotch is sliding. Tequila and Canadian whisky face tariff threats, and chief executive Debra Crew's repair plan – $500 million in cost cuts and $3 billion in free cash flow from 2026 – is viewed with scepticism. [ Is Guinness owner Diageo on activist investors' radar as stock languishes at eight-year low? Opens in new window ] Shares have almost halved from their post-pandemic high. Investors are drinking in the Guinness story. They're just not ready to buy Diageo.
Irish Post
21-05-2025
- Business
- Irish Post
Guinness to open new Covent Garden location while cutting costs elsewhere
DIAGEO, the parent company of Guinness, has announced a $500 million cost-cutting plan along with significant asset disposals by 2028. Amidst these measures, the Guinness brand is highlighted as a key element for future growth by their owner. Diageo, the global drinks giant behind Johnnie Walker, Tanqueray and Guinness, is operating in difficult times for the global drinks industry. With falling sales, investor anxiety, and mounting debt, the company is launching a financial reset. According to CFO Nik Jhangiani, the savings will come from streamlining trade investments, advertising, and supply chains, with an eye toward achieving $3 billion in annual free cash flow by 2026. Despite plans to offload some significant assets, Guinness is notably not on the chopping block. CEO Debra Crew reaffirmed that 'nothing has changed' regarding the status of the stout powerhouse—Guinness remains central to Diageo's portfolio. This decision reflects Guinness's continued commercial strength, especially in markets like Britain and Ireland. That expansion is taking physical shape in the form of a £73 million investment into Guinness at Old Brewer's Yard, a massive brewery and visitor experience slated to open in London's Covent Garden by the end of 2025. The project, originally delayed by the collapse of the lead contractor, marks the return of brewing to the area for the first time since 1905. The new Open Gate Brewery in London will join sister sites in Dublin, Baltimore, and Chicago. It's expected to attract up to half a million visitors annually and create 250 jobs across a 54,000-square-foot site. While traditional Guinness won't be brewed there (all European Guinness continues to be produced in Dublin), the microbrewery will craft more than a dozen limited-edition beers, including low-alcohol options under head brewer Hollie Stephenson. Beyond beer, it will feature multiple dining options and serve as the southern British base for Diageo's Learning for Life hospitality training programme, teaching over 100 bartenders each year. Despite supply chain issues that caused temporary shortages in London pubs last Christmas, Guinness remains one of the most in-demand beers in the UK, currently number two, just behind San Miguel. Current estimates suggest that one in every ten pints pulled in London is for Guinness. See More: Business, Covent Garden, Guinness
Yahoo
20-05-2025
- Business
- Yahoo
Drink company that sells Guinness and Johnnie Walker sees $150M profit hit from tariffs
The world's biggest spirits maker, Diageo, said on Monday that the impact of President Trump's tariffs is expected to be $150 million "on an annualized basis." A 10% tariff on United Kingdom and European imports into the U.S. is the causing factor, the company said in a fiscal third quarter trading statement. "In the third quarter we delivered strong organic net sales growth and are on track to deliver on our guidance of sequential improvement in organic net sales performance in the second half of fiscal 25," Diageo CEO Debra Crew said in a statement. "We also reiterated our organic operating profit outlook for fiscal 25, including the impact of tariffs based on what we know at this time," she continued. Toyota Sees $1.3B Profit Hit From Trump Tariffs In 2 Months Back in February, Diageo estimated its annualized hit from the duties would be roughly $200 million, after threats of a 25% levy affecting Mexican tequila and Canadian whisky did not materialize. Read On The Fox Business App Diageo plans to save $500 million in costs by 2028 following years of sales declines and revised down its expected hit from U.S. tariffs as the threat of levies on Mexico and Canada receded. The plan will help the maker of Johnnie Walker whisky and Guinness beer deliver about $3 billion in free cash flow per year from fiscal 2026 and reduce debt, Crew said in the statement. Us Consumer Sentiment Drops To Near Record Low In May On Inflation Worries, Tariff Uncertainty Diageo generates around 45% of sales in the United States from products that must be made in either Mexico or Canada. The spirits industry was already struggling with a sharp drop in sales amid high interest rates and inflation when President Donald Trump announced sweeping tariff plans that threatened to upend sales further. Click Here To Read More On Fox Business Reuters contributed to this report. Original article source: Drink company that sells Guinness and Johnnie Walker sees $150M profit hit from tariffs
Yahoo
20-05-2025
- Business
- Yahoo
Guinness maker Diageo braces for a €133 million US tariff hit
London-listed drinks maker Diageo forecast a $150 million (€133.8m) hit from the US trade tariffs annually. The company, which makes Guinness, Johnnie Walker whisky and Gordon's gin, is one of the world's top spirits makers and operates from more than 130 sites across the world. 'We view the near-term industry pressure as largely macro-economic driven, with continued uncertainty impacting both the timing and pace of recovery,' Debra Crew, the company's chief executive, said. Diageo has been struggling with sales and has seen its London-listed share price decrease by more than 21% in the last 12 months. As part of the firm's turnaround efforts, it announced a $500m (€446m) cost savings programme over three years, 'which will enable both reinvestment in future growth and improved operating leverage', noted the report. Related European alcohol industry faces €13bn blow from Trump's 200% tariffs Hungarian filmmakers in the shadow of Trump's tariff threat According to the company's latest trading statement, organic net sales were up 5.9% in the third quarter of Diageo's current financial year ending in March 2025. Net sales for the third quarter increased by 2.9% to $4.4bn (€3.9bn) compared to the previous year. 'In the third quarter, we delivered strong organic net sales growth and are on track to deliver on our guidance of sequential improvement in organic net sales performance in the second half of fiscal 25,' Crew said. 'We also reiterated our organic operating profit outlook for fiscal 25, including the impact of tariffs based on what we know at this time.' The company is expecting continuous growth in its organic sales for the last quarter of its fiscal year ending in June 2025, compared with the first half of fiscal 25. But the firm also expects 'a slight decline in organic operating profit' in the second half of fiscal 25 compared with the prior year, already factoring in the impact of the tariffs. For the following fiscal year, starting in July 2025, Diageo expects to deliver positive operating leverage, with organic profit growth ahead of organic net sales growth. It forecasts to deliver $3bn (€2.68bn) free cash flow, too. Sign in to access your portfolio
Irish Daily Mirror
20-05-2025
- Business
- Irish Daily Mirror
The infuriating reason the humble pint of Guinness is to become MORE expensive
British drinks giant Diageo is steeling itself for a hefty £111 million impact from US tariffs, despite the UK government having brokered a trade arrangement with ex-US President Donald Trump. The Sun has been informed by the heavyweight FTSE 100 company, famed for brands like Guinness, Smirnoff, and Johnnie Walker, of an incoming ten per cent baseline duty on imports, dealing a significant blow to one of the UK's top exporters. Chief executive Debra Crew disclosed the firm's strategies to mitigate the increased costs, which include implementing price increases in the US market. This could result in Americans forking out more to enjoy their beloved beverages. In reaffirming their commitment to tradition, she added: "We still have no plans to offload Guinness." It appears that Johnnie Walker, the jewel in Diageo's crown and a scotch through and through, will bear the main brunt of these new impositions. In a recent stroke of marketing genius, the whisky titan teamed up with the smash-hit Netflix series 'Squid Game' to roll out special edition bottles, reports the Express. This insight throws into sharp relief the ongoing contention that Sir Keir Starmer's trade deals, while beneficial to sectors like car-making, might be neglecting key exporters elsewhere. Yet, some pressure has eased off the beverage behemoth, with the anticipated 25 per cent tariff on Mexican liquors failing to manifest—a tidbit of good news for Diageo's portfolio, which includes such names as Don Julio tequila and Crown Royal whisky. The UK's recent trade deal with India has been hailed by Ms Crew as a significant breakthrough. It unlocks the doors to the world's largest whisky market and comes alongside the launch of Godawan, a single malt whisky crafted by Diageo in Rajasthan, India. In a move to beef up its financial prospects, spirits giant Diageo is committing to a plan that aims to deliver £373million in cost savings and could see less familiar labels being shed from their portfolio. CFO Nik Jhangiani indicated that upcoming brand dismissals will be more notable than those done previously: "The dismissals would be above and beyond the small disposals seen in recent years." Though there has been talk, Guinness remains a solid asset under Diageo's umbrella. Experts suggest it's still at the heart of the company's plans, with Richard Hunter of Interactive Investor commenting: "Guinness accounts for two-thirds of Diageo's beer sales and it appears this jewel in the crown is one Diageo is keen to protect."
