Guinness maker Diageo sales squeezed under ‘competitive pressure’

Diageo’s sales grew only slightly in the first quarter, as competitive pressure weighed on some of its largest markets. The figures highlight the challenge facing chief executive Sir Dave Lewis as he tries to revive growth at the maker of Guinness, Johnnie Walker and Tanqueray.

Net sales rose 1.2 per cent to $4.9bn, while organic sales increased 0.6 per cent and volumes slipped 0.1 per cent in July to September. North American sales fell 3.7 per cent, including double-digit declines for Don Julio and Casamigos; EMEA organic sales rose 2.4 per cent, helped by higher volumes and Guinness growth in Africa and Central Europe. Diageo has also reported an annual sales fall of 3 per cent and Lewis has pledged up to $850m in cost savings.