Diageo slashes dividend and vows to address Guinness capacity constraints in London

A picture


Diageo has slashed its dividend and cut its annual sales and profit forecast for the second time in four months, as the maker of Guinness warned of capacity constraints affecting drinkers of “the black stuff” in London pubs,The world’s largest spirits maker – which owns brands including Smirnoff vodka, Johnnie Walker whisky and Don Julio tequila – reported weak demand in the US and China in the first results released under the new chief executive, Sir Dave Lewis,The former Tesco chief executive, who earned the nickname “Drastic Dave” as a result of his cost-cutting during almost three decades at the conglomerate Unilever, took the reins at Diageo in January and wasted no time in cutting the company’s shareholder dividend in his attempt to turn around the drinks maker,Describing his first seven weeks in the role as “pretty intense”, Lewis said in a results webcast it had not been a simple choice to reduce the dividend, halving it to 20 cents a share, down from 40,5 cents a year ago.

“This is not an easy decision to make, but we believe it is the right one.The North American market is challenged.Our portfolio needs some time and investment to make it more competitive.At the same time, we need to invest in our business, specifically in its capacity and capability,” Lewis said.Lewis has joined London-based Diageo at a time when it is struggling with the impact of Donald Trump’s tariffs, squeezed household finances and consumer shifts, amid the rise in use of GLP-1 weight loss jabs and lifestyle changes as many younger people choose to drink little or no alcohol.

His appointment, after a four-month recruitment drive by the company, followed the abrupt resignation last July of Debra Crew, during whose tenure Diageo struggled with lacklustre performance and investor disquiet.Diageo’s shares were boosted after the announcement of Lewis’s appointment last November but slid by 6% during early trading on Wednesday, the biggest faller on the FTSE 100.It came as the company said it expected organic sales to fall between 2% and 3% in 2026, while it forecast its organic operating profit to remain flat.Lewis said consumption of Diageo’s spirits remained fairly stable despite the use of GLP-1 drugs such as Mounjaro and Wegovy but added that consumers were increasingly choosing to have fewer drinks each time they indulged.“It’s the serves per occasion where we see the change,” Lewis said.

“What you see is a very significant squeeze on disposable income.”The company intends to respond to squeezed consumer finances by offering smaller packs, Lewis said.Praising Guinness as a “phenomenal asset”, which Lewis said was the fastest-growing beer brand in North America, he admitted it continued to face challenges.“If you’ve tried to buy a pint in London you also know that we have some capacity constraints, too.This capacity and geographical constraint is an issue that we need to address, and quickly.

A picture

Rise of the ‘daycap’: is this the end of late-night drinking?

Forget nightcaps – an afternoon tipple is the new way to squeeze socialising into your evening, while still getting to bed on time. A great idea or a recipe for disaster?Name: The daycap.Age: As old as fermentation, and impatience.Appearance: Nothing new, under the sun.It’s not a hat, then

A picture

Supermarket hot cross bun taste test: Choice gives top score to a chocolate bun

Some might be scandalised by the idea of a hot cross bun containing anything other than fruit. But in the annual taste test of supermarket hot cross buns, consumer advocacy group Choice has awarded one of its highest-ever scores to a less than traditional product.This year Choice tested 15 buns from Coles, Woolworths, IGA, Aldi and Bakers Delight, including traditional fruit, chocolate and gluten-free varieties.Woolworths Bakery Chocolate Hot Cross Buns Made With Cadbury Milk Chocolate Chips, which cost 73c a bun, received an overall score of 95%, taking out first place in the chocolate bun category. That is one of the highest scores in Choice’s 10-year history of hot cross bun taste tests

A picture

‘Tinderbox’ UK may be one shock away from food riots, experts say

One shock could spark social unrest and even food riots in the UK, according to dozens of the country’s top food experts, because chronic issues have left the food system a “tinderbox”.The group first identified a series of issues that are making access to food vulnerable in the UK, including the climate crisis, low incomes, poor farming policy and fragile just-in-time supply chains. These have left the UK dangerously exposed, the researchers said.They then analysed the shocks that could tip this vulnerable system into a full-blown food crisis, with major extreme weather events, cyber-attacks or international conflicts ranked top. These shocks would hit supply chains and push up food prices, which could lead to increased social tension and hidden market sales of unsafe food and, in the worst-case scenario, civil unrest or riots

A picture

Georgina Hayden’s quick and easy recipe for roast butternut squash, halloumi and avocado tacos | Quick and easy

Taco night has become a weekly occasion in our house – something all ages and palates can get on board with. We like to switch up the protein depending on the season and our cravings, but this is our current vegetarian favourite. It’s not traditional by any means, but a wonderful way to get a rainbow of veg into our diets. The cubes of halloumi are joyful when roasted, as are the pops of toasted spiced pumpkin seeds. You could even drizzle them with a little honey for the last couple of minutes of cooking, leaning into a salty-spicy-sweet finish

A picture

Nadiya Hussain’s recipes for chicken half-moons and rice paper tteokbokki

I use a lot of rice paper and always have plenty at home, because it can be used in a wide variety of ways. It’s delicious fried, as are most things! These half-moons are filled with an aromatic chicken mince, while tteokbokki is a Korean dish of chewy rice tubes that are often cooked in a stew. They are not always easy to find, but I love them, so I make my own.Prep 5 min Cook 20 min Makes 12134g pack rice paper spring roll wrappers 3 tbsp oil 6 garlic cloves, peeled and finely chopped 3 tbsp gochujang paste 2 tbsp soy sauceTo serve Sesame oil Spring onions, trimmed and thinly sliced Sesame seedsDunk each sheet of rice paper in a lipped plate or shallow bowl of cold water, submerging them until soft. Roll each one into a log, then cut in half and set aside

A picture

How to make proper rice pudding – recipe | Felicity Cloake's Masterclass

There are almost as many rice puddings as there are savoury rice recipes. If you were also put off by that dazzlingly white, school dinner gloop, fear not, this is a much more luxuriant baked dessert, gently spiced and finished with sweet wine and cream. It can be enjoyed warm or cool, on its own or with a spoonful of jarred fruit or some vivid pink spring rhubarb.Prep 5 min Cook 2 hr 10 minServes 450g butter, plus extra for greasing50g soft light brown sugar 100g pudding rice 1 litre whole milk (see step 4)1 unwaxed lemon ¼ tsp freshly grated nutmeg¼ tsp ground cinnamon, or a small length of cinnamon stick1 bay leaf ½ vanilla pod, or 1 tsp vanilla extract 1 pinch salt 2 tbsp sweet fortified wine –eg pedro ximenéz or cream sherry, madeira, tawny port (optional)150ml double creamHeat the oven to 160C (140C fan)/325F/gas 3. Find a wide baking dish or ovenproof pot large enough to hold about 1