Retailers, consumers and prices
Check out the slowing sales at Diageo.
The world economy is in a shambles. You would think people would drink more, not less.
But Diageo — the folks who make Smirnoff vodka, Guinness beer and Johnnie Walker whisky — warned today that sales growth was slowing – a lot.
The company slashed its profit growth forecast and said it did not expect any improvement in the second half of the year from slowing sales growth it saw in the first half.
“What we are seeing is sales growth slowing. Consumer demand is soft in certain parts of the world, we are seeing some destocking and we are stopping some orders where we have concerns about credit quality,” Finance Director Nick Rose said in an interview.
The company also said it would cut an unspecified number of jobs as part of a program aimed at reducing costs by $144 million
Hopefully, somebody will by those displaced workers a drink.
Also in the basket:
Coca-Cola profit tops view, shares rise
U.S. retail sales unexpectedly up 1 percent