Johnnie Walker Maker, Diageo, Posts Largest Sales Drop Since the Pandemic

As inflation and high interest rates force many to find ways to cut spending, it appears alcohol is also losing its buzz. The maker of Johnnie Walker whisky and Guinness beer, Diageo, recently reported the largest decrease in sales since the pandemic.

According to Debra Crew, Diageo’s CEO, consumers are “cautious” about spending right now, and alcohol sales are feeling the impact. Company-wide, overall revenue dropped 1.4% to $20.3 billion for fiscal year 2024, which ended on June 30. Industry experts predicted that reported revenue would hit $21.2 billion. Sales of Johnnie Walker, specifically, fell a significant 10% in just North America alone in the same period, according to CNN.

The recent sales downturn is quite the opposite of what happened during COVID-19 lockdowns. Consumers, stuck at home, bought alcohol to pass the time, increasing the bottom line for alcohol makers across the board. However, recent inflation woes have left many only spending on grocery essentials, leaving their favorite booze on the store shelves.

Meanwhile, Diageo is working toward curbing the downward trend. In the company’s press release, Crew noted that fiscal 24 was a “challenging year,” but Diageo remains “well-positioned for growth.” Plans are in the works to improve productivity and gain more insight into why customers buy its products.

Diageo has one of the largest portfolios of liquor brands in the world. Its family of popular spirits includes Smirnoff, Crown Royal, and Captain Morgan. Many of these products have been around for decades and are available in many parts of the world.

“Investors should remember that Diageo has a world-class portfolio of brands,” wrote Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, per CNN. “That’s helped Diageo hold or grow its market share in over 75% of the regions it operates in, despite the current challenges for the wider industry.”

Earlier this year, trade organization Comité Champagne reported a substantial drop in Champagne sales, noting an 8.2% decrease in shipments for 2023. In 2022, 325 million bottles of Champagne were moved, compared to only 299 million the next year.