Diageo has not seen any significant downturn following Brexit

Diageo has not seen any significant downturn following Brexit

The UK's decision to leave the European Union has not had a notable impact on Diageo's business, according to the president of its Europe, Russia & Turkey unit.

Speaking to analysts earlier this week, John Kennedy said the company remains confident, but vigilant. The UK voted for a so-called Brexit on 24 June. The formal process to withdraw from the EU, which will take at least two years, is yet to begin.

Brexit - What is certain is that nothing is certain - Click here for a just-drinks comment

"We do believe that, medium term, there are things that we need to be tuned into," Kennedy said. "Our current trading does not show any significant downturn, either in GB or on the continent. In terms of our confidence in this year's fiscal plan, it remains. But, it is something that we're staying very close to."

Earlier this year, Diageo CEO Ivan Menezes said Brexit would not affect the exports of Scotch whisky. He believes Scotch will continue to avoid tariffs into the EU while in the rest of the world, such as the US, "nothing changes".

Brexit has created some unease in the alcohol industry, with a just-drinks survey showing a fall in confidence since the referendum. However, Diageo has benefitted from the subsequent currency headwinds, as most of its sales come from outside of the country.