Drop in Latin American drinking prompts Diageo to issue profits warning

Barrels of whisky stored at a Diageo warehouse in Tennessee. Photograph: Erik Schelzig/AP

The Guinness to Johnnie Walker drinks maker Diageo has issued a profit warning as a result of cash-strapped customers in Latin America and the Caribbean consuming less alcohol and seeking cheaper brands.

Shares in the world’s largest spirits company plunged more than 11% in early trading on Friday, making it the biggest faller in the FTSE 100, as investors worried that the trend in the region might spread to other markets.