Emerging market fears as Diageo, Remy sales slide

Both Diageo and Remy Cointreau reported sales that missed estimates, casting doubt over the outlook for distillers as growth slows in emerging regions.

Diageo said frailty in markets including China will weigh on growth this year after posting an unexpected drop in third-quarter revenue.

Remy, which makes Remy Martin cognac, said it expects to report a decline of as much as 40% in annual profit as China’s government cracks down on extravagant spending on gifting and banqueting.