Diageo steps up US promotions as key brands continue to lose volume, says Deutsche Bank
Published: 08:27 24 Jun 2026 EDT
Diageo PLC (LSE:DGE) has increased promotional activity across several of its biggest US spirits brands as it battles to stabilise sales in a challenging market, according to Deutsche Bank.
Analyst Mitch Collett said the proportion of Diageo's US sales sold on promotion has been rising year-on-year since October and accelerated further in the latest four-week Nielsen data to 13 June.
The share of sales on promotion increased by 320 basis points by value and 440 basis points by case compared with a year earlier, marking the largest increase in the current cycle.
The trend suggests Diageo is relying more heavily on discounts and promotional activity to support demand as US spirits consumption remains subdued.
Among the group's largest brands, Casamigos tequila saw promotional activity rise by 910 basis points year-on-year, while Captain Morgan increased by 770 basis points. Smirnoff and Crown Royal also recorded notable increases.
All four, plus Johnnie Walker and Buchanan's whiskies, are corporate "supporters" of the FIFA Men's World Cup in North America this summer.
Despite the heavier promotional support, volumes remained under pressure. Captain Morgan sales volumes fell 5.7% year-on-year in the latest period, Casamigos declined 4.2%, Crown Royal dropped 13.1% and Smirnoff fell 10.6%.
While Casamigos showed some improvement compared with its 12-week trend, volume declines persisted across all four brands.
Deutsche Bank retained its 'buy' recommendation on Diageo, with a target price of 1,759p, compared with Tuesday's closing price of 1,551.5p.
