Diageo sales lose sparkle in downturn

Guinness-to-Smirnoff drinks firm Diageo today said the economic hangover had caused a sharp slowdown in sales and slashed full-year forecasts on profit growth.

In a sign that the company suffered a difficult festive period, Diageo reported net sales growth was 3% in the six months to the end of December – down from 6% in the first quarter of the period.