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Diageo has revealed plans to implement a $500m cost savings programme over three years, to enable reinvestment in future growth and ‘improved operating leverage’.

The alcohol giant announced the first phase of the programme, dubbed ‘Accelerate,’ as part of its Q3 trading statement for its fiscal year 2025. It intends to support a ‘more agile’ operating model for Diageo, which said it expects to deliver around $3 billion free cash flow per annum from fiscal 2026.  

Diageo’s chief executive, Debra Crew, said in a statement: “Consistent with our strategic priorities and our focus on what we can manage and control, we are introducing the first phase of our Accelerate programme. This sets out clear near-term cash delivery targets and a disciplined approach to operational excellence and cost efficiency.”

“It will also ensure that we are well-positioned to deliver sustainable, consistent performance while maximising shareholder returns; even if current trading conditions persist.”

Diageo is yet to confirm specific measures to be taken as part of the programme and is expected to share further details within its fiscal full-year results in August. This could include further asset disposals – Diageo recently sold its Safari liqueur and Cacique rum brands, and is currently in talks with Newlat Food to sell its production facility in Italy.

Alongside the cost savings programme, the company announced a revised estimation of the expected

impacts of the recent tariff developments in the US.

Under the assumption that the current 10% tariff will remain on both UK and European imports into the US, that Mexican and Canadian spirits imports into the US remain exempt under USMCA and that no further changes to tariffs are put in place, Diageo has estimated the impact of tariffs to be around $150 million on an annualised basis.