London, Jan 15, 2026, 09:15 GMT — Regular session
- Diageo shares slipped in early London trading following two days of headlines about China divestments
- Report says the group is considering various options for its China assets, including a potential sale
- Next catalyst: interim results expected on Feb. 25
Diageo shares fell 0.9% to 1,677 pence by 0915 GMT, erasing some of the previous session’s gains amid investor caution over potential asset sales in China. 1
The stock moved after reports emerged that the Johnnie Walker and Guinness maker is weighing options for its China assets, possibly including a sale, as part of efforts to streamline operations and address debt as well as U.S. tariff pressures. Diageo has brought in Goldman Sachs and UBS to help with the review but declined to comment. 2
China hasn’t lived up to the earnings promise for Diageo. Exiting the market there proves complicated—slow, messy, and tangled in politics—even when the assets in question are listed.
Shares climbed 1.65% on Wednesday, closing near 1,692 pence and outpacing the stronger FTSE 100. Despite the uptick, the stock remains about a third below its 52-week peak, highlighting investors’ waning tolerance for sluggish demand and strategic uncertainty. 3
Diageo has warned investors to prepare for a challenging year ahead. Back in November, it lowered its forecast, anticipating fiscal 2026 sales to remain flat or dip slightly, and projecting only low- to mid-single-digit growth in operating profit. 4
The China discussion arrives as new CEO Dave Lewis steps into his role. Diageo announced back in November that Lewis would assume the CEO position starting Jan. 1, 2026. 5
This week, a separate company announcement revealed senior executives, including CFO Nik Jhangiani, purchased small amounts of shares through the employee share plan at £16.39 each — typical insider activity but notable in a jittery market. 6
Diageo’s interim results for the six months ending Dec. 31 will drop on Feb. 25—a key date that’s just around the corner. 7
“The key will be what companies say about earnings, and this earnings season guidance will matter more than the actual numbers,” Steve Sosnick, chief market analyst at Interactive Brokers, said in a broader markets note this week — a comment that fits Diageo’s situation perfectly. 8
But there’s a catch. The China sale remains at the review stage, and “options” could translate into a slow sell-off, a partial exit, or no deal if bids fall short or approvals stall.
