We’ve launched Distilled 2025 - our annual Consumer Trends Report.
Introduction
Diageo is a resilient business, and in fiscal 24, we have taken decisive actions to improve our near-term execution, including addressing the inventory issues in our Latin America and Caribbean (LAC) region.

We are strengthening our consumer insights, and by the end of calendar year 2024 we will have rolled out our proprietary Consumer Choice Framework across markets covering a significant portion of our net sales, giving us much deeper understanding of consumer motivations and occasions. We are redeploying our resources where we have the best opportunities to grow and we have stepped up our route-to- market capabilities, including in the US, our largest market. We have also delivered a record year of productivity savings – nearly $700 million, over-delivering on our three-year productivity goal by $200 million.
(1) Includes recommended final dividend of 49.17p
(5)% Reported volume movement
Reported volume movement
2023: (7)%
(4)% organic volume movement
organic volume movement
2023: (1)%
(1)% Reported net sales movement
Reported net sales movement
2023: (0)%
(1)% Organic net sales movement
Organic net sales movement
2023: 7%
+8% Reported operating profit movement
Reported operating profit movement
2023: (6)%
(5)% Organic operating profit movement
Organic operating profit movement
2023: 7%
Performance in a challenging environment
Regional performance
In our Latin America and Caribbean (LAC) region, following our update to investors in November 2023, we have worked with our wholesale and retail partners to manage inventories and ended fiscal 24 with more appropriate levels for the consumer environment. We have implemented five key action areas to improve inventory visibility in LAC: expanding our access to sellout data; incentivising sellout data reporting and stock counts; investing in commercial planning; and piloting digital case tracking. In Brazil, our largest LAC market, the category improved in the second half and we gained share. Inventory levels have been dramatically reduced in Mexico, our second largest market, but we see persistent challenges in a highly competitive environment and have initiated a review to improve performance. Going forward, I believe we have the necessary processes, data visibility, leadership, incentives and sellout culture to align future performance with consumer demand.
In North America, we finished the year winning or maintaining TBA market share in brands covering 90% of our US net sales, and our strategic priorities remain clear. We will unlock growth by driving our largest brands in our largest categories of whisk(e)y and tequila, recruiting into new occasions with innovation, and raising the bar on execution. Crown Royal Blackberry launched this year and has been a great success, especially in recruiting new consumers to whiskey. In tequila, Don Julio saw increased momentum in the second half as it grew 15x faster than the total US spirits industry, with the growth led by Don Julio Reposado where we increased investment and expanded distribution. Guinness was the fastest-growing imported beer in the on- trade, bolstered by the new “Lovely Day” campaign with longtime brand fan Jason Momoa. For spirits, we have made the biggest change in our route to market for a decade. Working with our distributors, we are putting more “feet on the street” to target both categories and regions and locations with the highest growth potential.
In Europe we delivered resilient growth, mainly driven by another year of strong momentum and double-digit growth for Guinness, helped in part by Guinness 0.0 for which net sales and volume more than doubled in the year. We achieved market share growth in most European markets, despite lower consumer confidence.
In Asia Pacific, we grew organic net sales, volume and operating margin in challenging macroeconomic conditions while increasing investment in the region. Growth was driven by Chinese white spirits, and strong performance in India with continued premiumisation and double-digit growth in scotch and other whisky. Tequila also continues to gain momentum.
In Africa, beer was the key driver of performance. Despite a tough macroeconomic backdrop, we delivered robust organic net sales growth of 12%, with double-digit growth in Guinness, Senator and Malta Guinness.
These regional highlights bring to life the resilience and strength of our diversified global footprint as a business.
Strengthening our operating model in key markets
As well as transforming our US route-to-market, we are also transforming our operating model in key regions where we see growth opportunities. We are expanding our organisation structure in Dubai to solidify our leadership in premium spirits in the Middle East. We transformed our business model in the vibrant Nigerian market and entered a long-term partnership with Tolaram which will allow us to increase distribution of the brand – another example of Diageo’s proven asset light model for Guinness. We also announced that Diageo has acquired the distribution rights of all remaining brands currently distributed by our joint venture, Moët Hennessy Diageo France. This followed our previous update in March 2024, where we outlined our phased approach to transforming our distribution model in France by creating our own in-market company.
Performance in our largest categories
It has been another strong year for Guinness with the brand delivering 15% organic net sales growth - double digit growth for seven consecutive halves. We gained share in our top three markets for Guinness - Great Britain, Ireland and US - and we continued to expand Guinness’s consumer base. Guinness 0.0, our alcohol-free offering, now accounts for nearly 3% of our Guinness volume globally.
My ambition to take tequila around the world just as Diageo did with Johnnie Walker remains. It is a fun and versatile category and Diageo was an early entrant. Tequila remains the fastest-growing scale Spirits category and we have maintained our global tequila leadership by value. You can read a case study on our tequila roll out on page 18.
Diageo remains the world leader in scotch, our largest category, and while the underperformance of LAC this fiscal has weighed on our scotch category performance, underlying performance with the consumer is much better. We gained share in 9 out of 10 of our largest measured scotch markets. Johnnie Walker is living up to its “Keep Walking” mantra, driving over half of our scotch organic net sales and continues to be the number one international spirits brand in value and volume in calendar year 2023 as measured by IWSR.
Doing business the right way: Spirit of Progress
This fiscal, I initiated a review of our ESG strategy and as a result, we have simplified and prioritised the commitments that form our Spirit of Progress plan. We are prioritising the areas that have the most significant impact on our commercial performance and our advocacy efforts, including the harmful use of alcohol, water stress, carbon, and our role in the communities in which we operate. We’re not only doing the right thing for our people, consumers and communities, but also for our business in the long term.
Our people and leadership
During my first year as CEO, I have taken great pride in the resilience and talent of our teams, including our Executive Committee who bring together decades of experience in the industry, along with a breadth of market and functional expertise. In spending time with our teams around the world from Ireland to the US, Scotland to Kenya to Brazil, I have seen first-hand the commitment, dedication, and resolve of Diageo’s people. I would like to thank every single person in our organisation for their hard work this year.
I would also like to thank our outgoing Chief Financial Officer Lavanya Chandrashekar, who has been a trusted colleague and partner to me, both when we worked together in North America, and more recently during my first year as CEO. On behalf of all Diageo colleagues, I wish her much future success as she returns to the US. I am delighted that Nik Jhangiani will succeed Lavanya as CFO – he has more than 30 years of finance experience gained in roles in the UK, Europe, India, Africa and the US, including 20 years as Chief Financial Officer; and has spent most of his career in the consumer and beverage industries including 20 years within the Coca-Cola system. His proven track- record and international mindset mean he will be a strong addition to our leadership team.
Outlook
Our industry is still taking time to normalise after the supercharged growth and stock impacts of the Covid-19 super-cycle. The consumer environment continues to be challenging with the conditions we saw towards the end of fiscal 24 persisting into fiscal 25, yet I continue to be confident in Diageo’s future.
Diageo possesses iconic and enduring brands from Guinness to Tanqueray to Johnnie Walker. All with unmatched heritage, but with absolute relevance for today’s consumer. Our success has never come about by standing still – it has been achieved by blending those great names with the most passionate teams, the best brand building, and a commitment to excellence throughout our business. As the consumer and the operating environment continues to evolve, we will keep adapting to emerging tastes, new social occasions and consumer passions and tastes – we will “keep walking”, unlocking growth, and

Debra Crew
Chief Executive
Statement on Section 172 of the Companies Act 2006
Section 172 of the Companies Act 2006 requires the Directors to promote the success of the company for the benefit of the members as a whole, having regard to the interests of stakeholders in their decision- making. In making decisions, the
Directors consider what is most likely to promote the success of the company for its shareholders in the long-term, as well as the interests of the group’s stakeholders. The Directors understand the importance of taking into account the views of stakeholders
and the impact of the company’s activities on local communities, the environment, including climate change, and the group’s reputation.
Read more about how stakeholders were taken into account in decision-making on pages 100-104.