By WSJ Staff

American drinkers are no longer splashing out on pricey tequila.

London-listed shares of Diageo dropped 10% after the owner of Don Julio and Casamigos slashed its dividend. It also cut annual guidance, citing weakness in the U.S. market.

Diageo on Thursday reported a sharp fall in U.S. spirits sales for the six months ended Dec. 31, saying demand for its high-end tequila brands had been hit by cost-conscious consumers trading down to cheaper alternatives.

The company, which also makes Johnnie Walker whisky and Smirnoff vodka, said weakness in North America and China had more than offset sales growth in Europe and Latin America.

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(END) Dow Jones Newswires

February 25, 2026 08:18 ET (13:18 GMT)

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