Diageo (NYSE:DEO) Stock

Diageo

Formed in 1997 through the merger of Grand Metropolitan and Guinness, Diageo is the largest distiller globally by sales. Diageo acquired some of the Seagram assets in 2001, which gave it brands such as Captain Morgan rum and Crown Royal Canadian whisky. Since then, mergers and acquisitions have mostly been bolt-on in nature, plugging gaps in the company's product and geographic portfolio. The firm has also shed noncore brands over the years, including the majority of its wine assets in 2015.

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News

Movers

Diageo shares are trading lower Wednesday following the company&#39;s first-half FY25 earnings report, which showed a year-over-year decline in financial results.

Diageo Shares Are Down Today: What&#39;s Going On?

Johnnie Walker Diageo

Earnings

Equities

Guidance

General

Diageo reported a slight 0.6% drop in net sales for H1 FY25, primarily due to unfavorable foreign exchange. The company suspended medium-term guidance, citing uncertainties, including tariffs, and committed to more frequent updates on its performance.

Alcohol Giant Diageo Suspends Medium-Term Guidance As Trump&#39;s Tariff Looms

handshake merger

Asset Sales

Diageo is selling its 80.4% stake in Guinness Ghana Breweries to Castel Group, enhancing their African partnership. While the sale moves forward, Diageo retains ownership of the Guinness brand and other products.

Alcohol Giant Diageo Sells Majority Stake In Guinness Ghana For $81 Million

Diageo PLC

Deoleo SA

A February filing shows that Senator Thomas H Tuberville reported a sale in Tractor Supply (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSCO#NASDAQ">TSCO</a>), valued between $76,006 and $265,000. The transaction date is listed as February 14, 2025, with the report published on February 14, 2025.
At present, Tractor Supply shares are trading down 0.07% at $56.95.
<h3>Senator's Recent Trading Activity</h3>
In the past three years, Thomas H Tuberville made 972 stock trades totaling more than $14.58 million. The largest trades involved stocks like ChannelAdvisor and Microsoft. Their most notable trades made recently include key transactions: 
<ul>
<li>Tractor Supply (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSCO#NASDAQ">TSCO</a>): $15,001 - $50,000 Sale</li>
<li>Texas Instruments (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXN#NASDAQ">TXN</a>): $15,001 - $50,000 Sale</li>
<li>Diageo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>): $15,001 - $50,000 Sale</li>
</ul>
Here's a summary of Thomas H Tuberville's recent trades:
<table>
<thead>
<tr>
<th>Company</th>
<th>Ticker</th>
<th>Stock Type</th>
<th>Amount</th>
<th>Transaction Type</th>
<th>Transaction Date</th>
</tr>
</thead>
<tbody>
<tr>
<td>Tractor Supply</td>
<td>TSCO</td>
<td>STOCK</td>
<td>$15,001 - $50,000</td>
<td>S</td>
<td>2025-01-10</td>
</tr>
<tr>
<td>Carrier Global</td>
<td>CARR</td>
<td>STOCK</td>
<td>$1,001 - $15,000</td>
<td>S</td>
<td>2025-01-10</td>
</tr>
<tr>
<td>Texas Instruments</td>
<td>TXN</td>
<td>STOCK</td>
<td>$15,001 - $50,000</td>
<td>S</td>
<td>2025-01-10</td>
</tr>
<tr>
<td>Diageo</td>
<td>DEO</td>
<td>STOCK</td>
<td>$15,001 - $50,000</td>
<td>S</td>
<td>2025-01-10</td>
</tr>
<tr>
<td>Microsoft</td>
<td>MSFT</td>
<td>STOCK</td>
<td>$15,001 - $50,000</td>
<td>S</td>
<td>2025-01-10</td>
</tr>
</tbody>
</table>
If you want to stay updated on Thomas H Tuberville's trades and other congressional members, check out our <a href="https://www.benzinga.com/gov-trades/members/thomas-h-tuberville">government trades tool</a> to track their activity in real time!
<h3>The Importance of Congressional Transactions</h3>
A congressional transaction is when any representative or senator either buys or sells an individual stock.
Anyone working in Congress must file a Periodic Transaction Report to inform the public of their recent transaction within 30 days of being notified of the transaction and within 45 days of the transaction date.
In April 2012, Former President Barack Obama signed the STOCK Act into law. The act prohibits members of Congress from using private information given to them by their position for personal gain such as buying or selling a stock. The act also expanded disclosure requirements for members of Congress by requiring them to file a monthly disclosure.
<h3>The Importance of Congressional Transactions</h3>
Congressional transactions shouldn't be the primary reason for an investing decision, but they can be an important factor for an investor to consider.
When a senator or representative makes a new purchase, it could be an indication they expect the stock to rise.
A sale, on the other hand, can be made for a variety of reasons, and may not necessarily mean the seller thinks the stock will go down.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Government

Politics

Trading Ideas

TSCO

This Senator Just Sold Up To $265K In Tractor Supply Stock

Diageo Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>) shares are trading lower Wednesday following the company's first-half, fiscal-year 2025 earnings report, which showed a year-over-year decline in financial results. The stock is also under pressure due to concerns <a href="https://www.benzinga.com/25/02/43463646/alcohol-giant-diageo-suspends-guidance-as-trumps-tariff-looms">over new U.S. tariffs on imported alcohol.</a>
What To Know: The company reported net sales of $10.9 billion for the first half of fiscal 2025, down 0.6% from the previous year, primarily due to unfavorable foreign exchange fluctuations. Organic net sales grew by 1%, driven by price and mix improvements. Operating profit fell 4.9%, and the company's operating profit margin contracted by 132 basis points, impacted by currency headwinds and lower organic operating margins.
Despite these challenges, Diageo maintained or expanded market share in 65% of measured markets, including the U.S. The company also reported an increase in net cash flow, which rose by $0.2 billion to $2.3 billion, while free cash flow increased to $1.7 billion.
One of the primary concerns weighing on Diageo's stock is the implementation of U.S. tariffs, which the company acknowledged could disrupt its momentum in the second half of fiscal 2025. While Diageo had anticipated the possibility of tariffs, their confirmation adds uncertainty to the company's outlook. As a result, Diageo suspended its medium-term guidance and committed to providing more frequent near-term updates. 
CEO Debra Crew noted that the company is taking steps to mitigate the impact but emphasized the broader economic consequences for the hospitality industry.
The tariff concerns, coupled with weaker first-half financial results and an expected decline in organic operating profit for the second half of the fiscal year, have contributed to Diageo's stock decline. The company's leverage ratio stood at 3.1x net debt to EBITDA as of December 2024 and it declared an interim dividend of 40.5 cents.
DEO Price Action: Diageo shares closed Wednesday down 3.86% at $111.47, according to <a href="https://pro.benzinga.com/dashboard?new_user=False&amp;backend=google-oauth2">Benzinga Pro.</a>
<figure class="wp-block-image size-large is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020525&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1024" height="564" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05154502/Screenshot-2025-02-05-at-15.44.21-1024x564.png" alt="" class="wp-image-767935" style="width:417px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05154502/Screenshot-2025-02-05-at-15.44.21-1024x564.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05154502/Screenshot-2025-02-05-at-15.44.21-300x165.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05154502/Screenshot-2025-02-05-at-15.44.21-768x423.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05154502/Screenshot-2025-02-05-at-15.44.21.png 1495w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
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Photo: Shutterstock.

Diageo Shares Are Down Today: What's Going On?

WIIM

Diageo shares are trading lower. The company may be moving on continued weakness after reporting a year-over-year decline in H1 financial results yesterday. Additionally, the threat of tariffs may be weighing negatively on the stock.

Alcoholic beverage company Diageo Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>) released first-half <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">FY25 earnings results</a> and suspended medium-term guidance.
The company reported net <a target="_blank" href="https://www.diageo.com/en/news-and-media/press-releases/2025/2025-interim-results-half-year-ended-31-december-2024" rel="noreferrer noopener">sales </a>of $10.9 billion for the half year ended December 2024, reflecting a slight decline of 0.6% primarily driven by unfavorable foreign exchange fluctuations.
Despite the decrease, organic net sales showed a positive growth of 1.0%, bolstered by favorable price/mix changes. However, volume experienced a slight dip of 0.2%.
The company&#8217;s operating profit also decreased by 4.9%, with its operating profit margin shrinking by 132 basis points, impacted by currency movements and lower organic operating margins.
Despite this, Diageo managed to maintain or grow market share in 65% of total net sales value in measured markets, including the U.S.
Moët Hennessy&#8217;s significantly lower contribution and unfavorable currency exchange rates were the primary reasons behind a 9.6% drop in pre-exceptional earnings per share, which fell to 97.7 cents.
On the other hand, the company saw an increase in net cash flow, rising by $0.2 billion to reach $2.3 billion, with free cash flow rising to $1.7 billion, an increase of $0.1 billion compared to last year.
Given ongoing uncertainty in both the geopolitical and macroeconomic landscapes across key markets, Diageo has decided to withdraw its medium-term guidance.
Instead, the company has committed to providing more frequent near-term updates on its performance.
Also Read: <a target="_blank" href="https://in.benzinga.com/news/global/25/02/43442219/why-beer-tequila-avocados-cars-iphone-prices-could-rise-trumps-tariffs-on-canada-mexico-china-to-hurt-several-sectors" rel="noreferrer noopener">Why Beer, Tequila, Avocados, Cars, iPhone Prices Could Rise: Trump&#8217;s Tariffs On Canada, Mexico, China To Hurt Several Sectors</a>
&#8220;Diageo has anticipated and planned for a number of potential scenarios regarding tariffs in recent months. The confirmation at the weekend of the implementation of tariffs in the US, whilst anticipated, could very well impact this building momentum,&#8221; said CEO Debra Crew.
&#8220;It also adds further complexity in our ability to provide updated forward guidance given this is a new and dynamic situation. We are taking a number of actions to mitigate the impact and disruption to our business that tariffs may cause, and we will also continue to engage with the US administration on the broader impact that this will have on everyone supporting the US hospitality industry, including consumers, employees, distributors, restaurants, bars and other retail outlets.&#8221;
Diageo declared an interim dividend of 40.5 cents. The company&#8217;s leverage ratio stood at 3.1x net debt to EBITDA as of December 2024.
Price Action: DEO shares are trading lower by 0.06% at $116.86 in premarket at the last check Tuesday.
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Image by pil76 via Shutterstock.

Alcohol Giant Diageo Suspends Medium-Term Guidance As Trump's Tariff Looms

Fiscal 25 outlook Organic net sales growth In the second half of fiscal 25, before the impact of the tariffs, we would have expected to build on the momentum seen in the first half and would have expected to deliver a sequential improvement in organic net sales growth compared with the first half of fiscal 25. The confirmation at the weekend of the implementation of tariffs in the US could however impact this building momentum. We still expect to continue to deliver strong market share performance. Organic operating profit growth Before taking into consideration the potential impact of tariffs we had expected a slight decline in organic operating profit in the second half of fiscal 25 compared with the prior year, broadly in line with the decline in the first half, reflecting higher staff costs (given lower incentive comparatives in the same period last year), and continued strategic investments including in digital and US route-to-market. Clearly the implementation of tariffs could further impact this and when we can more accurately assess the impact we will update as appropriate.

Diageo Anticipates Continued Strong Market Share In 2025, But Tariff Impact Remains A Key Watchpoint

Diageo H1 EPS $0.98 Down From $1.08 YoY, Sales $10.90B Down From $10.962B YoY

BF/A

BF/B

Fomento Economico Mexicano S.A.B. De C.V.

MGPI

WVVI

Shares of alcohol stocks are trading lower as investors assess U.S. tariff risks which may negatively impact the industry.

Beer and spirits maker Diageo plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>) has said that it is selling its 80.4% stake in Guinness Ghana Breweries plc to Castel Group, deepening its ongoing <a target="_blank" href="https://www.diageo.com/en/news-and-media/press-releases/2025/diageo-plc-sells-its-shareholding-in-guinness-ghana-breweries-plc-to-castel-group-for-81-million" rel="noreferrer noopener">collaboration with the African multinational</a>.
Although this sale takes place, Diageo will still hold the rights to the renowned Guinness brand, along with other products it currently manufactures at the brewery.
These items will remain in production under a new long-term licensing and royalty arrangement, according to Diageo.
The company will continue to oversee the marketing and strategy for the Guinness brand in partnership with Castel.
This arrangement will enable Diageo to retain control over the brand&#8217;s direction while leveraging Castel&#8217;s regional expertise. The collaboration with Castel spans 11 additional African markets, where the companies already work together.
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&#8220;Guinness Ghana is performing strongly powered by a fantastic team of people. Through this transaction, I look forward to the Guinness brand continuing to thrive and delivering further growth,&#8221; said President Diageo Africa and Chief Commercial Officer Dayalan Nayager.
All Diageo brands currently produced by Guinness Ghana, including Guinness, Malta, Orijin, Smirnoff Ice and Alvaro, and mainstream spririts, will continue to be produced under new license and royalty agreements.
This move supports Diageo&#8217;s asset-light business model, which emphasizes tailoring market approaches to local conditions in order to boost profitability.
This transaction is part of Diageo&#8217;s ongoing efforts to manage its portfolio, building on the recent sale of its stake in Guinness Nigeria and other strategic actions designed to accelerate growth in West Africa.
Price Action: DEO shares are trading lower by 0.87% at $122.46 in premarket at the last check Wednesday.
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Photo via Shutterstock.

Diageo shares are trading higher after the company announced they will review their drinks portfolio to reignite growth.

<a href="https://www.bloomberg.com/news/articles/2025-01-24/diageo-is-said-to-review-drinks-portfolio-to-reignite-growth?sref=2h1zKciy" title="https://www.bloomberg.com/news/articles/2025-01-24/diageo-is-said-to-review-drinks-portfolio-to-reignite-growth?sref=2h1zKciy">https://www.bloomberg.com/news/articles/2025-01-24/diageo-is-said-to-review-drinks-portfolio-to-reignite-growth?sref=2h1zKciy</a>

Management

'Diageo Is Said To Review Drinks Portfolio To Reignite Growth; Spirits Maker Seen Likely To Reduce Medium-Term Guidance; Diageo Weighing Options For $10B Guinness Brand' - Bloomberg News

TD Cowen maintains Diageo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>) with a Hold and raises the price target from $124 to $129.

Price Target

Analyst Ratings

TD Cowen Maintains Hold on Diageo, Raises Price Target to $129

Shares of major alcohol producers and distributors declined sharply Friday following a warning issued by U.S. Surgeon General Vivek Murthy about the increased cancer risks <a href="https://www.benzinga.com/government/regulations/25/01/42787400/alcohol-increases-cancer-risk-surgeon-general-warns">associated with alcohol consumption.</a>
What To Know: Murthy&#8217;s advisory emphasized the need for updated health warning labels to reflect mounting evidence of alcohol&#8217;s connection to cancer. These labels have not been revised since 1988. The advisory also called for reassessing recommended alcohol consumption limits, highlighting alcohol's role as the third-leading preventable cause of cancer in the United States, behind tobacco and obesity.
Murthy&#8217;s statement drew attention to alcohol&#8217;s association with at least seven types of cancer, including breast, liver and colorectal cancers. He pointed out that alcohol consumption contributes to approximately 100,000 cancer cases and 20,000 deaths annually in the United States. The announcement highlighted that only 45% of American adults are aware of the cancer risks posed by alcohol.
Stocks of leading alcohol companies reacted negatively to the news. 
Molson Coors Beverage Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAP#NYSE">TAP</a>) saw its shares drop by 3.72%, while Boston Beer Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAM#NYSE">SAM</a>) shares fell 4.26%. Anheuser-Busch InBev Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BUD#NYSE">BUD</a>)&#8217;s stock declined by 1.84% and Constellation Brands Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STZ#NYSE">STZ</a>) saw a 1.5% decrease. Diageo Inc.&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>) stock also traded lower, falling 3.15%. Brown-Forman (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BF#NYSE">BF</a>), the maker of Jack Daniel&#8217;s whiskey, experienced a 2.58% decline.
The Surgeon General's advisory reignited discussions about public health measures and the potential for new regulations requiring updated warning labels on alcohol products. 
Price Action: Molson Coors shares were down 3.25% at $55.27, Boston Beer shares were down 3% at $292.60 and Anheuser-Busch shares were down 1.85% at $49 at the time of writing, according to <a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent072924&amp;t=be2bearmibe3na1">Benzinga Pro.</a>
Image Via Shutterstock.

Alcohol Stocks Are Falling Today: What's Going On?

Shares of alcohol stocks are trading lower after US Surgeon General Murthy issued an advisory warning alcohol consumption could raise cancer risk.

U.S. stock futures were higher this morning, with the Dow futures gaining more than 100 points on Friday.
Shares of United States Steel Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>) fell sharply in <a href="https://www.benzinga.com/markets/equities/25/01/42779827/joe-biden-to-decide-on-nippon-steels-14-9b-us-steel-acquisition-on-friday-amid-veto-offer-labor-concerns">today's pre-market trading</a>.
This decline comes as President Joe Biden is poised to block the proposed acquisition by Nippon Steel (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NPSCY#OTC">NPSCY</a>), potentially as soon as Friday, Reuters reported, citing a source familiar with the matter.
United States Steel shares dipped 7.3% to $30.23 in the pre-market trading session.
Here are some other stocks moving lower in pre-market trading.
<ul>
<li>Tejon Ranch Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRC#NYSE">TRC</a>) shares dipped 11.4% to $14.01 in pre-market trading.</li>
<li>Lincoln Educational Services Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LINC#NASDAQ">LINC</a>) shares fell 7.7% to $14.10 in pre-market trading after falling over 3% on Thursday.</li>
<li>Hesai Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HSAI#NASDAQ">HSAI</a>) fell 4.6% to $15.39 in pre-market trading after jumping over 16% on Thursday.</li>
<li>Enhabit, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EHAB#NYSE">EHAB</a>) fell 4.5% to $7.40 in pre-market trading.</li>
<li>Diageo plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>) fell 2.9% to $122.58 in pre-market trading.</li>
<li>Nabors Energy Transition Corp. II (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NETD#NASDAQ">NETD</a>) fell 2.8% to $10.51 in pre-market trading.</li>
<li>Metallus Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTUS#NYSE">MTUS</a>) 2.8% to $13.31 in pre-market trading.</li>
</ul>
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Pre-Market Outlook

Markets

EHAB

HSAI

LINC

MTUS

NETD

NPSCY

United States Steel, Diageo And Other Big Stocks Moving Lower In Friday's Pre-Market Session

Macro Economic Events

Economics

Reuters Reported Trump's Mexican Tariff Plan Could Hit U.S. Tequila Imports From Diageo, Becle Worth $3+B Combined In 2023

Donald Trump&#8216;s 2024 presidential election win put several sectors in the spotlight, <a href="https://www.benzinga.com/topic/alcohol">including alcohol stocks.</a>
What Happened: Some people watched the outcome of <a href="https://www.benzinga.com/news/24/11/41768178/donald-trump-defeats-kamala-harris-to-win-2024-election">election night</a> on television from their home. Others likely scrolled along with social media on their phone. Some attended watch parties with friends and families, similar to a Super Bowl party or one for <a href="https://www.benzinga.com/top-stories/24/08/40610039/are-nvidia-earnings-wall-streets-super-bowl-super-bulls-arrange-watch-parties-in-new-york-city">Nvidia's quarterly earnings.</a> 
Regardless of who voters wanted to win — Trump or Kamala Harris — they may have bought more alcohol for Election Day this year, at least in New York, with liquor stores reporting a busy day.
One liquor store <a href="https://nypost.com/2024/11/06/us-news/nyc-liquor-stores-were-crazy-busy-on-election-night-workers-say-weve-been-spending-hours-just-restocking/">told </a>the New York Post they were three to four times busier than a regular weekday on Election Day with heavy sales coming in the early afternoon and around 5 p.m. ET. An employee from Brooklyn's Juice Box liquor store told the Post there was also a noticeable trend from many customers.
"People were buying sparkling wine and a bottle of liquor for both (outcomes)," the employee said.
Employees from other New York stores noticed the same trend. Customers were either buying one type of alcohol for a happy outcome or one for a negative outcome.
"I have no idea if people will be drowning their sorrows or celebrating," the Juice Box employee added.
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Why It's Important: While it is only one day of the year, Election Day 2024 could provide a short bump for alcohol stocks like Diageo Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DE#NYSE">DE</a>) and Constellation Brands (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STZ#NYSE">STZ</a>). Beer stocks like Anheuser-Busch InBev (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BUD#NYSE">BUD</a>), Boston Beer Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAM#NYSE">SAM</a>) and Molson Coors Beverage Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAP#NYSE">TAP</a>) may have also benefitted from Election Day.
Alcohol may be a coping or celebratory item for Election Day in the U.S., but in India the country <a href="https://timesofindia.indiatimes.com/world/us/us-election-2024-does-america-have-dry-days-like-india-during-election-season/articleshow/114945854.cms">has </a>dry days of no alcohol around their elections with residents unable to drink for 48 hours before the vote, on election day or as the vote is being totaled.
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Image: Shutterstock

Alcohol Stocks To Get A Boost From 2024 Election? Busy Liquor Stores Say Voters 'Drowning Their Sorrows Or Celebrating'

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<li>Nikola trucks to be the first Class 8 hydrogen fuel cell electric vehicles operated day-to-day in the state of Illinois</li>
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NKLA

DHL Supply Chain And Diageo To Incorporate Two Fuel Cell Electric Trucks; Class 8 Trucks Manufactured By Nikola Will Be Deployed With HYLA Modular Refueler At Diago Campus

Constellation Brands (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/stz#NYSE">STZ</a>) issued a mixed August quarter results lasy week, posting better than expected earnings as it continues to navigate a tough market.
<h3>Highlights Of The Second Quarter Of Fiscal 2025</h3>
Fueled by strong demand for its beer brands, especially Corona and Modelo, Constellation&nbsp;Brands reported net sales grew by 3% YoY to $2.92 billion.
Sales revenues increased by 6%&nbsp;while shipments&nbsp;grew by 4.6%.
Having already issued an alarm for its declining wines and spirits business whose sales dropped 12% to&nbsp;$388.7 million, Constellation reported a $2.5 billion write down. Wine and spirits were dragged down by a&nbsp;9.8% drop in shipment volumes.&nbsp;The division&rsquo;s operating income contracted 13% YoY to&nbsp;$70.5 million.
For the quarter ended on August 31st,&nbsp;adjusted earnings per share amounted to $4.32, surpassing&nbsp;LSEG&rsquo;s average estimate of $4.08.
Constellation can rely on its beer brands.
Beers have been the driver of Constellations&rsquo; success even before the pandemic lockdowns. Even in the post-pandemic era, consumers are turning to them, but doing so, they are also&nbsp;leaving behind wines and spirits. The latest quarter shows that Constellation continues to benefit from premium prices. While the industry continues being cautious in an uncertain macroeconomic environment, Constellation&rsquo;s beers were the biggest gainers for the twelfth successive quarter.
Yet, demand for spirits continues to fall.&nbsp;
But CEO Bill Newlands admitted the challenging macroeconomic backdrop has weighed on demand for beverage alcohol. Constellation gudied for full-year net sales growth between 4% and 6%, while expecting beer sales to go up from 6% to 8% and wine and spirits sales dropping 4% to 6%.
On the other hand, the wner of Guiness and Johnnie Walker, Diageo, is optimistic about spirits growth returning in the future. Diageo CEO Debra Crew believes that alcohol sales growth will return with the improving consumer environment. There&rsquo;s also increasing support from A list celebrities who are lending their influence to liquor brands. Among celebrities helping liquor brands become big businesses are Matthew McConaghew launched an organic tequilla brand, while Ryan Reynlods became a co-owner of Aviation Gin that was scooped up by Diageo in 2020, with George Clooney leading the way back in 2013 by co-founding Casamigos Tequilla, that was also sold to Diageo. But the reality is that Diageo plc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/deo#NYSE">DEO</a>) posted bleak quarterly results in September, reflecting a weak macroenvironment in North America. After another lacluster quarter for wine and spirits, Constellation is expecting a &lsquo;sequential&rsquo; improvement over the second half of fiscal 2025.&nbsp;
DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

Constellation Brands' Latest Quarter Shows Wine And Spirits Business Continue To Fall From Glory

A marketing company that counts actor Ryan Reynolds as its chief creative officer plans to go public in 2025, adding to the recent success stories for the actor best known for playing "Deadpool"<a href="https://www.benzinga.com/general/entertainment/24/09/40737439/ryan-reynolds-dominates-box-office-as-deadpool-while-also-building-billion-dollar-businesse"> on the big screen.</a>
What Happened: Connected TV advertising company MNTN, is the owner of the <a href="https://www.benzinga.com/general/entertainment/23/07/33427835/ryan-reynolds-is-bringing-a-popular-television-alien-back-to-screens-hide-your-cats">Maximum Effort marketing segment</a> co-founded by Reynolds and George Dewey in 2018.
Known best for its advertisements to promote "Deadpool" and other viral advertisements for companies connected to Reynolds, Maximum Effort Marketing was bought out by MNTN in 2021.
MNTN is eyeing a 2025 IPO according to a new report from <a href="https://www.bloomberg.com/news/articles/2024-09-27/ryan-reynolds-s-mntn-is-said-to-tap-morgan-stanley-for-2025-ipo?sref=TBDibEcD">Bloomberg</a>, with Morgan Stanley set to work on the public offering.
The connected TV advertising company raised $119 million in a Series D round in 2021 with BlackRock Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) and Fidelity Management leading the round with $110 million invested together.
The Maximum Effort name comes from a catchphrase of Reynolds' Deadpool character. A separate Maximum Effort Productions company was not included in the sale to MNTN and is not part of the IPO. Dewey serves as the chief brand officer at Maximum Effort Marketing.
The marketing company from Reynolds has made ads for companies like Aviation Gin and Mint Mobile, which are connected to the actor. The company also made a well-known ad for dating company Match.com that <a href="https://www.youtube.com/watch?v=KABSYzPqTTg">featured </a>Satan and marked the debut of Taylor Swift's re-recording of the hit song "Love Story."
"I genuinely love marketing and I have been gobsmacked by how much fun it has been and how fast we have grown. We wanted a future for our marketing arm that ensured we could continue to move fast, have fun and do really rewarding work," Reynolds said at the time of MNTN's acquisition.
Reynolds said MNTN's simplicity, speech and ability to open up access to TV for advertisers who can't pay for upfront agreements stood out.
"I believe the combination of our companies will create a 1+1 equals 3 situation, assuming my math checks out," Reynolds added at the time.
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Why It's Important: In a world of connected TV and viral advertisements that have to be quick and catchy, MNTN could stand out in a crowded field. The company's involvement in Reynolds and connection to several of his companies and movies could also help power growth in the coming years.
Aside from Maximum Effort Marketing and MNTN, Reynolds has built up several companies that are part of his success story away from the big screen.
The actor was a <a href="https://www.benzinga.com/m-a/23/03/31362824/ryan-reynolds-mobile-company-gets-1-35b-buyout-from-t-mobile-will-he-purchase-an-nhl-team-with-that">co-owner in Mint Mobile, </a>which was sold to T-Mobile US Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TMUS#NYSE">TMUS</a>) at a $1.35 billion valuation. Reynolds had a stake in Aviation Gian, which was sold to Diageo plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>) for $610 million in 2020.
Reynolds is also a<a href="https://www.benzinga.com/general/entertainment/24/04/38530584/ryan-reynolds-rob-mcelhenney-buy-another-soccer-team-can-dynamic-duo-turn-around-mexico-clu"> co-owner in soccer team</a> Wrexham AFC, owns a stake in Mexican soccer team Necaxa, and owns a stake in a Liberty Media Corporation Formula 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FWONA#NASDAQ">FWONA</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FWONK#NASDAQ">FWONK</a>) racing team. The actor was also among the previously interested parties in buying the Ottawa Senators NHL team.
While it is unknown if Reynolds owns a stake in MNTN, the IPO likely comes thanks in part to the success of Maximum Effort Marketing in recent years. The IPO could further illustrate the success Reynolds has had outside of acting.
Check This Out:
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<li>Lawmakers Made Huge Investments This Year. <a href="https://www.benzinga.com/gov-trades/?utm_source=BZprocontent093024">Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool</a></li>
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Photo: Shutterstock

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Ryan Reynolds' Billion-Dollar Streak: Will His Viral Marketing Firm Go Public Next?

<a href="https://www.diageo.com/en/news-and-media/press-releases/2024/diageo-expands-leading-position-in-non-alc-spirits-with-acquisition-of-ritual-zero-proof" title="https://www.diageo.com/en/news-and-media/press-releases/2024/diageo-expands-leading-position-in-non-alc-spirits-with-acquisition-of-ritual-zero-proof">https://www.diageo.com/en/news-and-media/press-releases/2024/diageo-expands-leading-position-in-non-alc-spirits-with-acquisition-of-ritual-zero-proof</a>

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