Though doubts persist, investors reassured by Diageo's turnaround plan

Some investors now have more faith in Diageo's ability to turn around its performance following a profit warning, despite the company's efforts to allay concerns regarding its plans in Latin America.

Following a November warning that cast doubt on the company and its management, including new CEO Debra Crew, investors closely followed the company's first-half results, which were released last week. Tanqueray gin and Johnnie Walker whisky are among the products the company produces.

Diageo admitted that it only realized the extent of its unsold stock accumulation relatively late in the game, which contributed to a steep drop in sales of its products in Latin America as consumers shifted to less expensive alcohol.

Three investors told reporters that Diageo's efforts to make sure it isn't caught off guard again are commendable, following the release of the company's most recent earnings.

Diageo announced that it was implementing measures to enhance the acquisition of data from its trade clients in the area, including testing digital shipment tracking.

In order to gain access to 200–300 additional trade clients in its supply chain, Diageo said that it is also pushing major distributors to permit independent stock counts at their most important clients.

Following Remy Cointreau's third-quarter sales, which improved sentiment regarding the outlook for spirits in China and the United States, Diageo's shares have increased by more than 3% since its half-year results.

They remain about 9% lower than before the profit warning and are lagging behind a broader index of peers in the beverage industry, even though they are still significantly ahead of major competitors like Pernod Ricard.