Diageo PLC: DGE takeaways from the Global Leadership Conference

研报英文原文证据摘录

Diageo PLC: DGE takeaways from the Global Leadership Conference

Barclays | Diageo PLC

takeaway is that Diageo appears to be taking a more holistic and market-specific approach to

pricing across the portfolio.

In terms of seeing results, the company suggested that there could be some early signs come

August, particularly in control states where Casamigos has already been repriced and in

markets where activation is being stepped up around FIFA. That said, the message was also that

this will take time to feed through, especially in the US three-tier system, where there is an

inevitable lag between pricing decisions and what appears on shelf. In that sense, August may

offer the first indication that the changes are moving in the right direction, but any broader

benefit is more likely to build through FY27 as the resets widen out across markets and

categories.

3. Ramping up in RTDs

Despite being around 20% of the RTD category a few years ago, led by brands such as Smirnoff

Ice, Diageo lost momentum in the space just as the segment accelerated. The reason, in

management’s view, was that the group had become too focused on premium spirits, while

RTDs did not receive the level of attention, activation or resource they required, due to their

lower percentage margin than the spirits portfolio.

The company pointed to the six-market RTD focus over the past 12 months, covering around

60% of the category, as early evidence that benefit from sharper execution is starting to come

through. Smirnoff Ice was highlighted as a recent revenue driver, suggesting that stronger

activation is beginning to have an impact. The broader message was that Diageo believes it can

regain momentum in RTDs if it gives the category consistent management focus, rather than