Diageo Posts Modest Sales Gain Despite US Slump
The spirits maker reported first-quarter net sales of $4.9bn, up 1.2 per cent, while volumes slipped in the July to September period.
Updated on Nov. 5, 2026 in Economic Indicators
Diageo recorded net sales growth of 1.2 per cent to $4.9bn in its first quarter, covering July to September. Sales volumes nonetheless fell 0.1 per cent over the same period.
Why it matters
The results show weakness concentrated in North America, the company's largest market, where tequila and Don Julio and Casamigos sales fell sharply. The figures set the backdrop for a turnaround plan led by new chief executive Sir Dave Lewis.
Diageo's organic growth was 0.6 per cent in the quarter, while North America, which makes up 36 per cent of the business, saw US sales and volume fall 3.7 per cent. EMEA, at 26 per cent of the business, grew organic sales 2.4 per cent on a 4.4 per cent rise in volumes.
The players
Diageo
Diageo is a British multinational drinks company that owns brands including Guinness, Johnnie Walker and Don Julio, and is one of the world's largest spirits producers.
Sir Dave Lewis
Sir Dave Lewis is a British former Tesco chief executive who became Diageo's boss in 2026 and launched the company's turnaround plan.
The details
Sales of Don Julio and Casamigos fell by double digits in North America, and tequila sales dropped by double digits in Mexico. Beer sales grew by double digits in North America, while Guinness rose in Africa and Central Europe, though beer sales in Britain and Ireland declined amid unusually hot weather and competitive pressure.
Timeline
Diageo's first quarter covered July to September, with sales growth reported in that period.
Sir Dave Lewis took over as Diageo boss at the beginning of 2026 and launched a turnaround plan.
For the year to end June, Diageo reported sales down 3 per cent to $19.6bn.
Market Landscape
Diageo's first-quarter net sales rose 1.2 per cent after a 3 per cent full-year decline to $19.6bn, suggesting a partial rebound from its recent slump. The company's continued weakness in North America, which accounts for 36 per cent of its business, points to ongoing competitive pressure in its largest market.
For consumers, the sales slump in North America and weaker tequila demand could lead to more promotions and price cuts as Diageo competes for shoppers. The company's planned cost savings of up to $850m may also affect the range and pricing of products on store shelves.
The takeaway
Diageo's results show that a modest topline gain can coexist with falling volumes in key markets, so investors and consumers should watch whether cost cuts and pricing changes translate into renewed demand in North America.
Further reading
Explore more on Economic Indicators to see how company sales results fit into broader economic trends.
