The news of the new programme to invest in a turnaround for the business. comes as the drinks giant behind brands such as Guinness and Johnnie Walker, revealed in its preliminary results for the year ended 30th June 2026.
It said that while it saw growth in Europe, Latin American & Caribbean (LAC) and Africa this was offset by weakness in North America and Asia Pacific.
Organic net sales declined 2% with volumes down 0.4%. Net sales of $19.6 billion declined by 3% mainly due to organic net sales decline and the impact of disposals, the company said. Organic operating profit increased by 2%.
Guinness, Smirnoff RTD and Johnnie Walker were highlighted as “standout performers” by the company.
In Europe, net sales growth hit 3.4% driven by good performance in the UK and Turkey with strong momentum in Guinness. Africa saw growth of 13.3% which Diageo said was due to market changes and innovation, while LAC sales were up by 7.7% fuelled by the growth of spirits and RTDs.
However, North America saw a drop in sales of -8.4% fuelled by pressure on Tequila while Asia Pacific saw a fall of -6.3% due to the weakness in white spirits in China.
Sir Dave Lewis, Chief Executive Officer, said: “We are pleased with our progress in LAC, Europe and Africa. We are focused on recovering our competitiveness in NAM and we are working through the consequences of Government policy in Chinese white spirits.”
He added: “The revised operating framework is being rolled out across Diageo and the changes are significant. In 2026 this change incurs a cost of $0.8 billion (c.70% of the total cost of the two year programme) with savings realised over 2 years starting in fiscal 27. These savings will allow us to invest in the turnaround without needing to reduce operating profit4.
