Dispiriting

Diageo had its second-worst day on record Friday after the English booze and beer giant warned of a sharp slowdown in its Latin America business.

London-based Diageo, which counts Johnnie Walker whisky, Captain Morgan rum and Guinness beer among its stable of brands, told investors that it expects growth in the first half of the current financial year to be slower than the previous half-year.

The company blamed a weaker outlook in Latin America and the Caribbean as a result of macroeconomic pressures and customers downtrading to cheaper products. The region accounts for around 11% of Diageo’s total sales.

The warning surprised investors because the company had previously indicated a “gradual improvement” in sales growth.

CEO Debra Crew said Diageo has also seen an impact from tensions in the Middle East and the conflict in Gaza.