Drinks Giants: Diageo, Pernod, AB InBev, Heineken — 2026-09-02
Pernod Ricard reported a significant annual profit drop of 26% due to weak demand in the US and China, while Diageo finalized a $1.2bn restructuring plan to offset declining sales in North America. Meanwhile, Heineken maintained positive momentum with volume growth, and new data highlights a third consecutive year of global beverage alcohol volume declines.
Drinks Giants: Diageo, Pernod, AB InBev, Heineken — 2026-09-02
Top developments
Pernod Ricard profits fall 26% on US and China weakness
Pernod Ricard announced a 26% drop in its annual profit to €1.2 billion for the fiscal year ended June 2026, citing persistent weakness in the American and Chinese markets alongside increased tariffs. The French spirits giant saw reported net sales fall 14.2% to €9.4 billion, with organic sales declining nearly 4%. CEO Alexandre Ricard emphasized a shift toward ready-to-drink (RTD) cocktails and cost discipline to defend margins as the company navigates this "transition year"
Diageo confirms $1.2bn restructuring to combat North America slump
Diageo has unveiled a $1.2 billion restructuring program aimed at delivering $850 million in savings over two years, following a fiscal year where organic net sales declined by 2.0%. The plan addresses significant challenges in North America and Asia Pacific, with reported operating profit margins declining by 535 basis points. The company reported free cash flow of $3.2 billion and net debt of $20.5 billion, with a net debt-to-EBITDA ratio of 3.1x
Global alcohol volumes fall for third consecutive year
New data from IWSR confirms that total global beverage alcohol volumes fell by 2% in 2025, representing a loss of approximately 500 million nine-liter cases. This marks the third successive annual decline, driven by contractions in beer, wine, and spirits, with spirits identified as the worst-performing category by value. Ready-to-drink (RTD) beverages remain the only major category showing growth
US-Canada alcohol trade war intensifies
Alcohol has become a central flashpoint in the ongoing trade dispute between the US and Canada, with industry leaders on both sides reporting significant losses. Threats of new tariffs, including potential US duties on Canadian spirits and retaliatory measures from Canada, are disrupting supply chains and pricing. The conflict is impacting everything from whiskey imports to cocktail ingredients, with manufacturers urging an end to bans and tariffs that are harming the sector
Local view
France: Financial media outlets are analyzing Pernod Ricard's stock performance, describing the recent results as a "hangover of the century" but noting potential long-term opportunities if the company successfully executes its cost-cutting strategy. Capital.fr and Investir highlight that the group is prioritizing rigorous management over strategic ruptures as it faces continued headwinds in key export markets
Netherlands: Dutch media coverage of Heineken remains positive, focusing on the "surprising" increase in beer sales despite broader societal trends toward reduced alcohol consumption among younger demographics. Reports highlight that Heineken's total volume rose by 1.6%, with the new CEO Rafael Oliveira’s compensation package potentially reaching €27 million due to share price performance linked to these strong results
Context & numbers
- Pernod Ricard FY2026: Reported net sales €9.404 billion (-14.2%); Organic sales -3.9%; Annual profit €1.2 billion (-26%)
- Diageo FY2026: Net sales $19.643 billion (-3.0%); Organic net sales -2.0%; Free cash flow $3.2 billion; Net debt $20.5 billion
- Heineken H1 2026: Total volume +1.6%; Consolidated volume +0.4%; Licensed volume +23.2%; Heineken® brand volume +5.3%
- Global Market: Total beverage alcohol volumes -2% in 2025; Spirits volume -1.3%; RTD volume +1.3%
On the radar
- Heineken Leadership Transition: Rafael Oliveira officially assumes the role of CEO on October 1, 2026, succeeding the previous leadership structure
- Tariff Escalation: Monitor developments in the US-Canada trade war, particularly any new threats of tariffs on Canadian spirits which could impact US bar and restaurant costs
- Cognac Security: In France, a thwarted organized theft attempt of €600,000 worth of cognac in Charente highlights ongoing security concerns for high-value spirits logistics
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
Powered by
