Diageo lands FIFA sponsorship as US spirits sales slump 15% and Jefferies upgrades target
DEO•Diageo’s North America revenue fell 9% and US spirits sales plunged 15% last quarter as premium brands struggled ahead of its first-ever FIFA World Cup spirits sponsorship. Jefferies raised its target to £20, urging Diageo to broaden beyond premium offerings to win price-sensitive drinkers and bolster sales.
1. World Cup Sponsorship Deal
Diageo secured the first-ever spirits sponsorship for the FIFA World Cup, granting exclusive rights to serve its brands at stadiums and fan festivals. The agreement marks the debut of liquor sales at the tournament and will spotlight labels like Buchanan’s Scotch, Don Julio 1942 and Casamigos tequila in host cities across the US, Canada and Mexico.
2. Financial Performance and Analyst Views
In its latest quarter, Diageo’s North America revenue declined 9% and US spirits volumes fell 15%, weighed down by lower demand for premium tequilas. Jefferies raised its price target to £20, citing the need for Diageo to expand into more affordable segments to offset the premiumisation slowdown and reach budget-conscious consumers.
