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Jim Cramer shift highlights concerns at Diageo and growth hopes for Constellation
Diageo stock is down 52% over five years, while Constellation grew beer sales 2% to $2.28 billion in fiscal Q1 but saw beer depletion slip 0.3%.
Yahoo Finance highlights how Jim Cramer’s recent remarks reflected a shift in his view of Diageo PLC and Constellation Brands, citing changes in the outlook for each company.
Cramer argued Diageo may struggle to grow, pointing to generational drinking shifts and trouble across key regions, including China where sales fell 34.9% in fiscal 2026, alongside North America net sales down 8.4%. The article also cites IWSR data that the total value of alcoholic and non-alcoholic beverages was $13 billion across 2024, with non-alcoholic products accounting for 72%.
The piece attributes part of Diageo’s weakness to company-specific issues as well, including problems in Latin America and the Caribbean tied to supply and inventory mismanagement, and notes the stock is down 52% over the past five years. It adds that Diageo has $20.5 billion of net debt, suggesting the company must address multiple fronts to rebuild confidence.
On Constellation, the outlet says Cramer leaned more positive, pointing to leadership under CEO Ned Fink and arguing the brand portfolio can support growth. Yahoo Finance reports Constellation grew beer sales by 2% to $2.28 billion in fiscal Q1 and beat analyst earnings expectations, even as beer depletion fell 0.3% in the same quarter.