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It's time to start thinking about Thanksgiving stocks. Thanksgiving is both one of the country's most celebrated holidays and also an important economic moment.

The alcoholic beverage company said consumers in one region are trading down to cheaper brands. The news came ahead of an investor event next week.

American Depositary Receipts (ADRs) of Diageo Plc (DEO) plunged after the world's largest spirits maker warned its profit and revenue will be hurt by falling demand in Latin America and the Caribbean.

Shares of Jack Daniel's parent Brown-Forman Corp. BF.B, -3.31% fell 3.1% in morning trading Friday, following a sales warning from rival Diageo PLC DEO, -14.55% DGE, -14.92%, which owns the Johnnie Walker whisky and Guinness beer brands. The U.S.-listed stock of Diageo tumbled 14.4% toward a three-year low, after the U.K.-based company said the lowered sales outlook was due to a big drop in demand in Latin America and the Caribbean.

Diageo PLC (LON: DGE), a prominent British multinational alcoholic beverage company, witnessed a sharp decline in its stock price today, dropping by 15.04% or 483.50 points. As of 13:14:49 UTC, the stock is trading at GBX 2,761.50.

FTSE 100 drinks giant Diageo tumbled as trouble in its Latin America and Caribbean market forced it to reduce forecasts.

Diageo PLC (LSE:DGE) has warned of slower growth in the second of the year after a “materially” weaker performance in Latin America and Caribbean sales. The spirits manufacturer said organic sales in Latin America and Caribbean (LAC), which is nearly 11% of Diageo's net sales value, are now expected to decline by more than 20%, year-on-year, in the first half of financial 2024.

Diageo has received a share price downgrade from analysts at Deutsche Bank, who argue that no news from Johnnie Walker and Smirnoff group is not a good sign. True, a capital markets day is scheduled for 15 November, but Deutsche Bank believes it is unlikely Diageo will alter its medium-term guidance of 5-7% organic sales growth and 6-9% organic operating profit growth for the years 2023-25.

Diageo plans to grow its market share from 4.7% to 6% by 2030 through a strategy of premiumization. The global alcoholic beverage market is expected to grow at a CAGR of 10.3% to 2028. Diageo's focus on premium and super-premium brands, positions it for growth in the expanding market.

Investors are turning defensive in the consumer stocks sector, according to JP Morgan with evidence from the latest quarterly earnings season suggesting specific equity stories are now in vogue. Growth slowed with a volumes recovery languishing and earnings momentum negative with most downside from Spirits.