Guinness maker Diageo sales squeezed under ‘competitive pressure’

Diageo recorded sluggish sales growth in the first quarter of its financial year as the drinks giant faced competitive pressure” in its top markets. The FTSE 100 group, which owns Guinness, Johnnie Walker and Tanqueray, recorded net sales up 1.2 per cent year-on-year at $4.9bn. But organic growth, which strips out currency volatility and the sale of East African Breweries to Asahi, came in at 0.6 per cent higher. Sale volumes were also a touch lower falling 0.1 per cent for the July to September period. This was led by a drop in north America, which makes up 36 per cent of the group s business. US sales dropped 3.7 per cent and volume fell by the same amount. In north America, we continue to focus on making our offer more competitive, and whilst this remains our biggest challenge, clear actions are underway,” Diageo boss Sir Dave Lewis said. Sales of the group’s premium brands Don Julio and Casamigos plunged double digits in north America, while tequila broadly was do