No evidence of it around here, but results just announced by Diageo plc indicate some people are drinking less these days.
The owner of brands such as Johnnie Walker, Smirnoff and Guinness reported that due to a dramatic drop in consumer spending in November and December, it is cutting its profit growth forecast for the full year
to 4% to 6% instead of 7% to 9% and will implement a restructuring program (similar to one at
Fortune Brands Inc.) that would save $100 million in 2010.
CEO
Paul Walsh and CFO Nick Rose said the restructuring could include job cuts and improved routes to market.
But Diageo is also apparently pursuing acquisitions in China and India, including a stake in India's
United Spirits Ltd. N
ew brand additions through acquisitions last year (including Ketel
One, Rosenblum Cellars and Zacapa, which are still being integrated) brought in
£92 million ($131 million) of net sales so far.
- Maria Woehr
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