The chief executive of Diageo issued a plea to investors for patience as the Johnnie Walker Scotch whisky and Smirnoff vodka maker suffered an unexpected fall in third quarter sales.
Ivan Menezes, who has been at the helm for almost two years, blamed “tough conditions in the emerging markets and subdued consumer demand in some developed markets” as organic net sales fell by 0.7 per cent and volumes slumped by 1.7 per cent.
In what one analyst described as a “no pain, no gain” message, Mr Menezes said that the results had also been affected by the actions taken to address the excess stock levels built up in distribution channels in many key markets.
In particular, the decision to destock some wholesale channels in southeast