August 6th, 2025: Diageo 2025 results and other news
DIAGEO 2025 results, Powerscourt Distillery, Bunnahabhain's casks sale, investments in raicilla, cachaça, no-low, Stock Spirits, eyes on the "shrink for growth" strategy and more...
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Hello everyone!
I’m writing from Prague this time, where I had a great chat with my friend
, sharing ideas and thoughts about the industry and its current situation. I’m also sharing some of his latest content with you today (you can scroll down if you prefer to skip the news and head straight there).Let’s start with the news everyone seems to be talking about now.
DIAGEO released its 2025 preliminary full-year results
The company reported a 1.7% growth in organic net sales, though reported net sales declined 0.1% (to $20.2 billion), and year-on-year operating profits dropped by 27.8%. These are, of course, not the only details you will find in their official report:
To save you some time looking for the visual presentation of the report, you can find it here:
If you prefer to read the news from a newspaper, Georgie Collins gives a comprehensive summary on The Spirits Business:
Full-year 2025 sales up for Diageo despite ‘challenging year’
Or, you can read about it in Oli Dodd’s article for Drinks International:
I find it interesting to note the different approaches to titles: the first one seems more positive, the second one underlines the plunge in profits ;)
Distillery news
Powerscourt Distillery is for sale
Irish whiskey producer Powerscourt Distillery is now seeking a buyer after entering receivership in June this year. As we have covered in recent weeks, this is a developing situation.
You can read the updates in Nicola Carruthers’s article for The Spirits Business:
Bunnahabhain launches cask investment programme
Islay distillery Bunnhabhain has launched a full cask sale direct to the public, allowing enthusiasts to buy new make casks directly from the distillery.
Mark Littler is exploring this choice on Forbes:
Historic Islay Scotch Whisky Distillery Launches Cask Investment Program
Mexico
3 million pesos to improve raicilla production
The Government of Jalisco has allocated a budget of 3 million pesos in 2025 to support the production of raicilla. More than 139,000 agave plants of Maximiliana Weber and Angustifolia Haw are expected to be delivered to 64 producers.
Agave spirits production seems to be getting more and more political.
You can read this article by El Informador Mexico for more details:
El Gobierno de Jalisco impulsa calidad y producción de la raicilla
Brazil
New law may help legalisation of artisanal cachaça in Minas Gerais
The Minas Gerais State Government has enacted a law that should facilitate the production of cachaça and sugarcane spirit in Minas Gerais.
News by Daniela Mallmann on CNN Brazil:
Lei para facilitar a produção de cachaça em MG é sancionada no estado
I was not able to access the local government website to find the official document, but I found the news on the official agency website, with useful links, in case you are luckier than I am:
Governo de Minas sanciona lei que vai facilitar a produção de cachaça e aguardente de cana no estado
Please, do let me know if you find more details on this new law.
Eyes on no-low
Non alcoholic drinks in France
The French newspaper Les Echos has launched a series of articles to explain the free-from trend to its readers, and features an article by Dominique Chapuis about alcohol-free beverages:
Bière, rhum ou vin sans-alcool : un pari coûteux mais prometteur pour les marques
Remember this newspaper is not focused on the industry, but writes for a more general readership.
While it’s interesting to see how the topic is analysed and explained to consumers, I found the first article in the series, by the French philosopher Gaspard Koenig, to be a little too "dreamy." In my view, there are far more marketing-related reasons at play than any deep-seated inner need when consumers choose alcohol-free products. You can read his article yourself to form your own opinion:
Who’s into no-low
Talking about no-low, here is a summary by Fiona Holland on Just-Drinks, to keep track of some of the big companies that have already dived into the business:
There is a lot of beer, a little wine, and also some big name in the spirits sector.
I have been talking about the no-low trend with many of you recently, and I perceive that it is still difficult for salespeople to clearly understand this market, create a strategy and build a stable growth. I’ll try to look for more useful content for you in the coming days.
Company strategy
Stock Spirits redefining its strategy
Stock Spirits Group’s CEO, Jean-Christophe Coutures, discusses the company's current strategy with Melita Kiely on The Spirits Business Podcast. A greater focus on value-for-money brands, rather than premiumisation, appears to be the key strategy, with the company keeping prices affordable by investing in production efficiency. You can listen to it or read the summary here:
Stock Spirits: mergers, acquisitions and creating value in a competitive market
I have no idea if this is branded content, because it is not mentioned. However, I recommend you keep in mind that when spokespersons speak for their company in an interview, they are always communicating and that can be a marketing tool. You all know this.
For this reason, I thought you might like some more detached analysis, that can help you better understand what big firms are doing right now.
Something to listen to
Understanding the "shrink for growth" strategy
In a new episode of his podcast, Chris Maffeo speaks with Filiberto Amati, the founder of Amati & Associates, about a "shrink for growth" strategy reshaping the drinks sector. Having previously worked for spirits companies like Campari and Disaronno, Amati explains how global firms are undergoing continuous offloads and acquisitions as part of this revolution.
You can both listen to the podcast and watch the video.
You can find it on the Maffeo Drinks website:
103 | Filiberto Amati | The Revolution Reshaping the Drinks Ecosystem
on Spotify:
or on Youtube:
That’s all for today!
I’ll see you on Friday to call it a week ;)