London, Feb 2, 2026, 08:51 GMT — Regular session
- Shares in Diageo edged up roughly 0.5% during early trading in London.
- China slashed whisky import tariffs from 10% to 5%, effective Monday.
- Attention now turns to Diageo’s interim results on Feb. 25, looking for fresh insights on China and broader demand trends.
Diageo (DGE.L) shares nudged 0.5% higher to 1,684.5 pence in early London trading Monday, slipping from an opening price of 1,693.0 pence. The stock has moved within a tight band between 1,683.0 and 1,700.0 pence so far.
China started slashing tariffs on whisky, cutting import taxes from 10% down to 5%, with the change set to kick in on Feb. 2, according to Beijing. The UK government estimates this move could boost exports by roughly 250 million pounds over the next five years.
This is significant today as China remains a key growth arena for premium spirits, with whisky exporters eager for any price cuts. In 2024, China ranked as the 10th largest export market for Scotch whisky, industry data cited by Reuters shows.
Mark Kent, CEO of the Scotch Whisky Association, said the tariff cut “has the potential to re-energise exports” of Scotch to China. Scotch Whisky Association
Diageo, known for Johnnie Walker and Guinness, operates in both spirits and beer markets, with sales spanning almost 180 countries. The company trades on exchanges in London and New York.
Paul Kopec, CEO of whisky asset manager Speyside Capital, described the tariff reduction as “a significant diplomatic win.” He noted that even minor adjustments can shift pricing and affect distributors’ interest in premium spirits. wealthbriefingasia.com
The policy change comes amid mounting challenges for segments of the drinks industry linked to China. Rémy Cointreau’s CEO told the Financial Times the company must lessen its dependence on China by expanding in other markets as the ongoing cognac downturn persists.
Diageo investors are focusing on Feb. 25, the date set for the company’s interim results covering the six months ending Dec. 31. CEO Dave Lewis and CFO Nik Jhangiani will host the webcast presentation.
Tariffs are just one factor in play. In November, Diageo trimmed its fiscal 2026 forecast, citing softer demand in both the U.S. and China. The company now expects sales for 2026 to be flat or even dip slightly — underscoring that demand, not tariffs, remains the key driver.
Traders are eyeing early signals from China’s pricing and order trends. Then, all focus shifts to Diageo’s update on Feb. 25, when it will reveal if demand and inventory levels are steadying in its main markets.
