Overview

• Diageo estimates a potential $200 million impact on operating profits if U.S. tariffs on imports from Mexico and Canada are implemented in March.
• The company has scrapped its medium-term sales growth target of 5-7%, citing macroeconomic and geopolitical uncertainty, including tariff threats.
• Tequila brands like Don Julio and Casamigos, along with Canadian whisky Crown Royal, are most at risk due to their geographic production requirements.
• Diageo plans to mitigate the tariff impact through pricing strategies, supply chain adjustments, and inventory management while engaging with the U.S. government.
• Despite challenges, Guinness remains a strong performer, delivering double-digit growth for the eighth consecutive half-year.