Losses to parent company of Bulleit tanks spirits stocks
Lexington Herald Leader • • business
Key Points:
- Diageo, parent company of Bulleit bourbon, cut its dividend by half and lowered full-year sales projections due to a 2.8% sales decline in the first half, primarily from a weak U.S. market, causing its shares to drop over 15%.
- The broader spirits sector was affected, with Brown-Forman shares falling more than 8%, as consumers are drinking less per occasion amid economic pressures and rising costs.
- Diageo's CEO Dave Lewis highlighted challenges in the North American market, especially in tequila sales, and indicated potential price cuts and portfolio adjustments to address consumer trade-down behavior.
- Other major spirits companies like Suntory and MGP Ingredients also reported sales declines, with MGP cutting contract dist
