US: Diageo dismisses fears of US slowdown - report
By just-drinks.com editorial team | 20 September 2007
Diageo has declared that this week's US interest rate cut would give a boost to consumers, but there had been minimal impact from any slowdown on its drinks, according to reports.
In an interview with Reuters, Diageo CEO Paul Walsh said that the cut in US rates was welcome but he had not seen any sign of a slowdown in demand for its Johnnie Walker, Guinness and Napa Valley brands.
Walsh said: "Any slowdown is being felt at the price-orientated area and that is an area that only accounts for around 10% of our portfolio."
"The person who is suffering is typically a family living in rural America with an annual income of US$50,000, with two inefficient cars and three children. This is not our target consumer, but is rather a domestic beer consumer," added Walsh.
Sectors: Beer & cider, Spirits, Wine
Companies: Diageo, Johnnie Walker, Guinness
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There is currently 1 comment on this article
Dear Paul,
Yr description of the US consumers that don´t drink yr Johnny Walker, Baileys and other big and expensive brands is probably quite true..one was imediately led to think of hillbillies in Kentucky with broken down old cars, drinkin moonshine and regional, cheap beer.
There are those of us, however, that view with some alarm the billions of dollars the US Federal Bank is having to plow into the stock markets to avoids another crash, which will affect emerging countries that have absolutely nothing to do with the greed that has led US speculators (including maybe 80% of yr USA consumers) to risky stock investment ventures. I recommend that tonight you send a thank you note to George W. Bush and pray 100 Ave Marias, because it looks like the oil prices are not under control and European and Asian stock markets are very vulnerable indeed.....
Pedro Brazofuerte said at 6:34 pm, September 20, 2007
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