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Diageo targets $1 billion savings after FY sales decline
['Joe Rogers']
The Spirits Business
If not for lagging sales of CWS – particularly the firm’s Shui Jing Fang baijiu brand – Diageo estimates that organic net sales would have been 1.5% higher.
Category and brand performanceAcross all spirits, organic net sales were down by 5%, despite a reported net sales increase of 75%.
Tequila – which grew by 15% in volume and by 18% in organic net sales in FY25 – saw organic net sales drop by 16%.
Diageo’s rum portfolio showed organic net sales improve by 2%, even as Captain Morgan dropped by 4% in organic net sales and 3% in volume.
Fiscal outlook for 2027Diageo has predicted flat organic sales growth for FY27, with North American organic net sales expected to fall by mid-single-digits.