Diageo: currency pressures won’t push up prices

Diageo has said that the weak pound will not see immediate changes in its prices.

It has been reported that the dropping value of Sterling could force prices of imported products up in the UK.

John Kennedy, president of Diageo Europe, Russia and Turkey, told journalist at their results conference today: “As a global business we don’t make any moves immediately based on currency changes because if we did we’d be changing our retail prices everywhere all the time.

“So we manage it on a global basis to see what the net results are. Yes, there’ll be some inflationary pressure in the UK but we’re not planning any significant immediate moves outside of the norm because of the sterling devaluation.”

Kathryn Mikells, chief financial officer added: “The pricing environment across the globe, I would not describe as favourable for price increases.”