Diageo shares decline

DIAGEO, makers of Guinness, Baileys and Bushmills in Ireland, reported yesterday first-quarter sales that fell short of expectations.

In its trading update the world’s largest spirit maker blamed destocking in the US as the recession drove consumers to buy cheaper drinks.

Shares in the maker of Johnnie Walker, Smirnoff vodka and other international brands, fell almost 5% in early trading, but by late afternoon the stock had regained some of their earlier losses and were down by under 2% at 957p.