Diageo Explores Sale of 63% Stake in Sichuan Swellfun Amid Alcohol Demand Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 13 2026
0mins
Source: stocktwits
- Cost-Cutting Strategy: Diageo is trimming costs and selling global assets, including a 63% stake in Shanghai-listed Sichuan Swellfun, to address market pressures and rebalance its portfolio amid declining alcohol demand.
- Stock Recovery: Despite challenges, Diageo's stock has risen over 5% this year, indicating initial market approval of its restructuring strategy, although it has seen a cumulative decline of 32% over the past four years.
- Executive Change: The company appointed former Tesco CEO Dave Lewis as its new CEO in November after a months-long search, aiming to enhance performance and competitiveness through leadership transformation.
- Changing Market Dynamics: With declining alcohol consumption in key markets like the U.S. and China, Diageo lowered its sales and profit outlook last year, reflecting the urgency of adapting to shifting consumer trends.
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Analyst Views on DEO
Wall Street analysts forecast DEO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DEO is 88.46 USD with a low forecast of 24.85 USD and a high forecast of 131.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 88.750
Low
24.85
Averages
88.46
High
131.00
Current: 88.750
Low
24.85
Averages
88.46
High
131.00
About DEO
Diageo plc is a United Kingdom-based international manufacturer and distributor of premium drinks. The Company offers beverage alcohol with a collection of brands across spirits and beer categories. Its segments include North America, Europe, Asia Pacific, Latin America and Caribbean, Africa, and Corporate and other. The SC&P segment manufactures products and includes production sites in the United Kingdom, Ireland, Italy, Guatemala and Mexico, as well as comprises the global procurement function. Its principal products include scotch whisky, whisk(e)y, vodka, tequila, gin, rum, liqueurs, beer, wine, and non-alcoholic spirits. Its collection of brands includes Johnnie Walker, J&B and Buchanan's whiskies, Smirnoff, Ciroc and Ketel One vodkas, Captain Morgan, Don Julio, Guinness, and Tanqueray, among others. It offers Ritual Zero Proof Non-Alcoholic Spirits (Ritual). It owns manufacturing production facilities across the globe, including distilleries, breweries, and packaging plants.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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