LONDON, June 6, 2026, 17:15 BST
- Diageo climbed 1.49% in London trading on Friday. The FTSE 100 added 0.07%. Markets are now shut for the weekend.
- FIFA World Cup kicks off June 11, and brokerages have pointed to a possible rise in beer and spirits sales as the tournament brings more attention to drinks volumes.
- North America is still lagging for Diageo. The company reported a 9.4% sales drop in the region for its latest quarter last month.
Diageo shares got a late push on Friday, up 1.49% as traders eyed World Cup-driven drinks demand. The Johnnie Walker parent is still dealing with a steep slowdown in its main U.S. spirits business.
The stock finished Friday at 1,493p on the sell side and 1,494p to buy. The FTSE 100 inched up 0.07%. Markets in London are closed for the weekend. Investors will watch Monday’s open to see if the move sticks.
Timing is in focus as the World Cup starts Thursday, June 11. Brokerages have beer and drinks stocks flagged for the event, with match-day sales expected to boost volumes at bars, retail and distributors. Diageo holds Guinness and also runs spirits brands Johnnie Walker, Smirnoff and Casamigos.
Diageo shares had a rough week, sinking 3.00% on Monday to £14.90, worse than the FTSE 100’s 0.68% dip. By Friday the stock managed to claw back to £14.95. Still, that’s nowhere near its 52-week peak at £21.42.
Diageo’s third-quarter update offered a small win for bulls. The company posted 0.3% organic net sales growth, narrowly beating analyst forecasts for a 2.3% drop, according to Reuters. Organic sales exclude shifts from currency, deals and divestments, giving a clearer read on the business.
Guinness sales were strong in Britain and Ireland. Customers in Latin America and the Caribbean stocked up ahead of the World Cup. But North America dropped, with sales off 9.4%. That leaves new Chief Executive Dave Lewis facing an old problem in the key region.
Diageo CEO Lewis called the U.S. “the biggest challenge” for the company and said Diageo has started to cut prices on tequila brands like Casamigos. “We’ve been able to make interventions in parts of the group and see responses quite quickly,” he said. Lewis cautioned that sorting out North America will need more time. Reuters
VT Tyndall Global Select manager Richard Scrope, whose fund owns Diageo, said there were some early signs of repair in the latest quarter. “It’s early days for Dave, but he does seem to be grasping it,” Scrope said. He’s waiting for the full strategy plan in August. Reuters
Diageo’s quarter beat forecasts thanks to Easter timing and pre-World Cup trade buying, according to Aarin Chiekrie, equity analyst at Hargreaves Lansdown. But Chiekrie said the North American market “remains challenged.” The company maintained its annual guidance, with organic net sales expected to drop 2%-3% and organic operating profit seen flat to down low single digits. Hl
World Cup beer demand boost isn’t only for Diageo. Jefferies analysts estimate that over 1 billion pints will be drunk worldwide during the tournament, lifting industry volumes by 0.3%. Reuters said brokerages see Anheuser-Busch InBev, which owns Corona and is the official beer sponsor, and Heineken as likely winners due to when and where the event takes place.
Diageo’s position is less clear. Guinness gives the group some beer exposure, and World Cup restocking has already boosted a few regions. The main focus now is on whether Lewis can support U.S. spirits demand without cutting prices and hurting margins.
World Cup demand might just shift sales earlier, not really push up total volume. People could stick to cheaper drinks as living costs stay high. Diageo has pointed to possible cost pressure from energy, supply, and distribution, all tied to tensions in the Middle East.
Investors are looking to see if Friday’s rally carries over as London trading opens this week and if drinks stocks can keep their World Cup momentum. Diageo’s next big date is August, when Lewis is set to outline the strategy that shareholders want to hear.
