Terry Smith Sells Diageo Stake Over Concerns About Weight-Loss Drugs' Impact

The Fundsmith founder cites the rise of GLP-1 drugs and management issues as reasons for exiting the spirits giant.

Terry Smith's Fundsmith Equity Fund has sold its long-held stake in Diageo, the maker of brands like Guinness and Johnnie Walker.
Smith expressed concerns that GLP-1 weight-loss drugs, which reduce appetite and alcohol consumption, could negatively impact the global drinks industry.
In his annual investor letter, Smith suggested the drugs may eventually be used to treat alcoholism, further reducing alcohol demand.
Smith also criticized Diageo's new management, led by CEO Debra Crew, for a lack of transparency and poor performance in Latin America, a key market.
Despite similar concerns about weight-loss drugs, Fundsmith retains its stake in Brown-Forman, citing its focus on premium spirits as a potential buffer.