The British beverage company Diageo, known from Johnnie Walker, Captain Morgan, Guinness and Smirnoff, warns that rising trade tensions may undermine the company’s positive outlook. Diageo announced this prior to the annual shareholders’ meeting.
CEO Ivan Menezes stated that Diageo is not immune to the escalation of the trade war and that the situation on the trade front is being closely monitored. The company benefits from growth in China, where its spirits are very popular. But because of the Sino-US trade war, the company is prone to weakening in China.
According to Menezes, Diageo has made a good start with its new broken financial year, which started on 1 July. The company maintained its expectation for growth in underlying sales and operating profit throughout the fiscal year.