London, Jan 31, 2026, 08:22 GMT — Market closed
- Diageo shares ended Friday 2.3% higher, closing at 1,675.5 pence
- Company has finalized the sale of Sheridan’s liqueur to Casa Redondo
- Investors are now turning their attention to Diageo’s interim results update, due on Feb. 25
Diageo (DGE.L) shares climbed 2.3% to close at 1,675.5 pence on Friday following the announcement that it completed the sale of Sheridan’s to Casa Redondo. Despite the gain, the stock remains far below its 52-week peak. Trading volume reached roughly 8.1 million shares, according to LSEG data. (Reuters Japan)
Why it matters now: Diageo is trimming its portfolio bit by bit as investors look for firmer evidence the company can stabilize demand and safeguard margins. These minor sales usually don’t shift forecasts, yet they reinforce the narrative—focused portfolio management, cash generation, and discipline—just when the market is quick to slam any sign of weakening consumer spending.
The broader context is playing a role as well. The FTSE 100 ended Friday up 0.5%, while sterling slipped about 0.6% against the dollar. That combo tends to boost overseas earnings for big multinationals once converted back into pounds. “The weaker pound is obviously beneficial for the multinationals,” Fiona Cincotta, senior market analyst at City Index, said. (Reuters)
Investors in spirits have been hunting for signs of demand holding steady, particularly in the U.S. and China. On Thursday, Rémy Cointreau topped quarterly sales estimates and highlighted better trading in the U.S., but it also warned that China remains tough, partly due to the late Chinese New Year. (Reuters)
Diageo is entering a new leadership phase. The company’s appointment of Dave Lewis — the former Tesco CEO and longtime Unilever executive — caught RBC Capital Markets analyst James Edwardes Jones off guard in a good way. He called it a “pleasant surprise” and added, “We think this is a good move.” At the same time, Kai Lehmann, senior analyst at Flossbach von Storch, warned the sector faces “structural headwinds” and stressed that Diageo’s brands require “revitalisation.” (Reuters)
February’s benchmark is tough to meet. Back in November, Diageo downgraded its full-year outlook, predicting fiscal 2026 sales would be flat or dip slightly, with operating profit growth limited to the low- to mid-single digits. (Reuters)
Traders will focus on sterling early in the next session and throughout the week. After that, risk appetite will come into play. On a daily basis, shifts in consumer staples or new signals from spirits rivals might have a bigger impact than a minor brand sale.
The risk is clear: selling assets won’t boost demand. If U.S. consumers continue cutting back on premium spirits, or if China’s appetite for high-end liquor remains weak, investors could shift their attention from neat portfolio adjustments to the bigger question of whether volumes and pricing are holding steady.
Diageo will release its interim results for the half-year ending Dec. 31 on Feb. 25. The firm has set a webcast for 07:05 UK time, followed by a live Q&A session at 09:30. (Diageo)
