Diageo PLC

European equities finished mixed on Thursday as investors weighed corporate earnings and geopolitical developments. The pan-European Stoxx 600 edged up 0.16%, while the UK's FTSE 100 slipped 0.19%, Germany's DAX added 0.05%, and France's CAC 40 rose 0.35%. WPP shares skyrocketed 29% after the advertising group reported better-than-expected first-half profits and margins, and Diageo climbed 5.6% on a $1 billion cost-savings plan. Deutsche Telekom surged nearly 6.5% after second-quarter operating profit rose to 6.863 billion euros from 6.642 billion euros a year earlier, while Hermes International gained over 5% in Paris. On the downside, Scout24 fell nearly 7% despite higher earnings, and Siemens dropped 4.4% even as third-quarter net income grew to 2.270 billion euros.

Diageo has announced a cost-cutting plan targeting one billion dollars in savings as part of a turnaround effort under new boss Dave Lewis. The Guinness maker said around 850 million dollars of the savings will come from operations and about 150 million dollars from its supply chain, with restructuring costs expected to reach roughly 1.2 billion dollars. The overhaul follows a 3% decline in net sales to 19.6 billion dollars for the year to June, dragged down by a 9.1% sales drop in North America, while European sales grew 5.7% and Guinness saw double-digit growth in Great Britain. The company did not disclose job impacts, though unions recently warned that 172 distillery workers in Scotland face potential redundancy. Diageo also slashed its proposed dividend by more than half and saw its shares rise 6% after the update.

Diageo has hired Sujay Wasan, the head of Procter & Gamble's oral care business in North America, to lead its Asia-Pacific operations. Wasan, who spent nearly 30 years at P&G, will oversee a division that accounts for about 20% of Diageo's global revenues. The appointment was orchestrated by former Tesco chief executive Sir Dave Lewis, who joined Diageo last year, and comes days before Sir Dave unveils a turnaround plan for the Guinness and Johnnie Walker maker. Wasan replaces John O'Keeffe, who has moved to become the head of Diageo's North America unit. The strategy update on Thursday is expected to focus on product innovation, a structural reorganisation, and a significant cost-cutting programme that will eventually entail substantial job losses.

The UK's FTSE 100 index rose 0.59% on Tuesday, driven by a strong rally in Unilever shares after the consumer goods giant reported better-than-expected earnings and raised its full-year guidance. The benchmark was up 63.90 points at 10,845.65 nearly half an hour past noon. Unilever climbed nearly 8% as it upgraded its full-year underlying sales growth guidance to the 4% to 6% range from its previous expectation of growth at the bottom end of the range, supported by around 3% underlying volume growth, and reported its best quarter of sales volume growth in 16 years. Other notable gainers included Admiral Group up over 4%, Relx up 3.6%, and Compass Group, Diageo, Imperial Brands, Croda International, Babcock International, Reckitt Benckiser, The Sage Group, and Experian climbing between 2.5% and 3%. Barclays Group shed more than 5% after reporting increased second-quarter operating costs, while Natwest Group and Lloyds Banking Group both eased about 1.3%. In economic news, UK shop price inflation rose 0.9% year-on-year in July 2026, missing expectations of 1.2% and marking the slowest increase since December 2025.

Bulleit Frontier Whiskey has introduced Bulleit '87, the brand's first new core expression since 2011 and its first-ever blend of bourbon and rye. Named for the year Bulleit was founded, the 90-proof whiskey marries bourbon and rye that are each aged at least four years, finished separately with toasted American and French oak staves, then blended and bottled in Shelbyville, Kentucky. Bulleit '87 joins Bulleit Bourbon and Bulleit 95 Rye in the three-bottle core lineup, carrying a suggested retail price of $29.99 for a 750mL bottle and arriving in select stores nationwide beginning September 2026. The launch will be supported by a sampling tour across 15 cities with more than 20 events pairing the whiskey with local foods.

Diageo has sold its recently closed Ontario bottling facility to a confidential buyer, exiting that site. The company is rolling out Crown Royal's new "Bring It" campaign across Canada and the United States, and has introduced Bulleit 20-Year-Old Rye, the oldest rye whiskey in the Bulleit portfolio. The sale of the Ontario facility and the focus on Crown Royal and Bulleit highlight how Diageo is reshaping its footprint and product mix. The stock closed at £15.645, with the share price down 16.2% over the past year and 48.7% over five years, though returns of 2.8% over the past week and 4.6% over the past month show a more recent pickup.

Bulleit has unveiled Bulleit 20-Year-Old Straight Rye Whiskey, its oldest rye expression ever, limited to just 1,776 individually numbered bottles. Made from the brand's signature 95% rye mashbill and aged for two decades in Kentucky warehouses, the cask-strength whiskey was blended by Nicole Austin, Director of American Whiskey Liquid Development and Capabilities at Diageo, and bottled at 68.5% ABV (137 proof). It will be available starting July 2026 at the Bulleit Distillery and select cities nationwide with a suggested retail price of $299 for a 750mL bottle. The launch builds on Bulleit's role in the modern rye resurgence, offering a deeply aged expression that preserves the bold spice and structure of the grain.

Diageo, PepsiCo, and Walmart are trading between 13% and 32% below their 52-week highs, presenting potential entry points for long-term income investors. Diageo has fallen 32% from its peak, with net income dropping 39% to $2.35 billion in fiscal 2025, but offers a 4.2% dividend yield at 12 times forward earnings. PepsiCo is down 18% despite extending its dividend growth streak to 54 consecutive years, yielding 4.2% with revenue up 2% and free cash flow up 7% last year. Walmart, down 13%, has raised its dividend for 53 straight years and generated $713 billion in revenue, with free cash flow doubling its dividend payout budget.

YunTuo Single Malt Whisky Distillery, Diageo's first whisky distillery in China, has gained international recognition through three wins at the 2026 Icons of Whisky China Awards, feature coverage in The Economist, and architectural recognition from ArchDaily. The distillery, located in Eryuan, Dali, Yunnan Province at an altitude of approximately 2,100 meters, won Sustainable Distillery of the Year, Production Team of the Year, and Distillery Manager of the Year. The Economist featured YunTuo in an article titled The Curious Rise of Chinese Whisky, while ArchDaily highlighted its architectural integration of traditional Bai design with industrial functionality. YunTuo has achieved 100% industrial water recycling and 100% operational carbon neutrality through green energy.

Carnival Cruise Line is partnering with Starboard and Diageo to offer a limited-edition Bulleit Bourbon exclusively in retail stores on 14 Carnival ships this summer, priced at US$59.99 as part of America's 250th anniversary celebrations. The collaboration is seen as a small proof point in Carnival's broader effort to boost higher-margin onboard spending and support yields, though it is unlikely to move the needle near term compared with larger catalysts such as the upcoming Q2 2026 earnings release on June 23 and ongoing debt reduction. Carnival's investment narrative projects $29.0 billion revenue and $3.7 billion earnings by 2028, requiring 3.8% yearly revenue growth and a roughly $1.2 billion earnings increase from $2.5 billion today, with a fair value estimate of $37.70 implying 25% upside. Some analysts forecast earnings climbing to about US$4.4 billion by 2029 but flag risks around older ships and rising costs.

Blade and Bow has announced its 12-Year-Old Solera Reserve, a new limited annual expression crafted by Diageo's Director of American Whiskey Liquid Development and Capabilities Nicole Austin. The whiskey begins with a 12-year-old Blade and Bow Kentucky Straight Bourbon and is finished through a multi-vat Solera process using vintage Cognac, Bordeaux, Moscatel, and Port vats. Bottled at 52% ABV, it carries a suggested retail price of $64.99 per 750ml bottle and will be available in select markets including North Carolina, South Carolina, Texas, Ohio, Georgia, Illinois, and Kentucky starting July 2026. The expression will also become a permanent feature of the Stitzel-Weller Distillery Experience, with a custom flight offered beginning July 17th.

Starboard is partnering with Carnival Cruise Line and Diageo to introduce a limited-edition Bulleit Bourbon celebrating America's 250th anniversary. The single-barrel bourbon, personally selected by Starboard President and CEO Lisa Bauer and Carnival President Christine Duffy, will be exclusively available in retail stores on 14 Carnival ships this summer for $59.99. The ships include Carnival Celebration, Carnival Dream, Carnival Firenze, Carnival Freedom, Carnival Horizon, Carnival Jubilee, Carnival Legend, Carnival Magic, Carnival Miracle, Carnival Panorama, Carnival Pride, Carnival Sunrise, Carnival Sunshine, and Carnival Venezia. The collaboration complements Carnival's planned A250 summer celebrations honoring the anniversary.