The drinks maker has come under pressure from investors amid falling sales, management changes, and a broader trend toward reduced alcohol consumption.

The London-based company has scrapped a key sales target and said it is talking with the US Government over upcoming tariff policies that could "impact" its sales recovery

Diageo withdrew its medium-term organic sales growth target on Tuesday as the world's top spirits maker took steps to try and mitigate the impact of U.S. tariffs on its tequila and Canadian whisky. Shares of the maker of Johnnie Walker whisky and Don Julio tequila dropped 2.

The spirits maker said macroeconomic and geopolitical uncertainty in key markets was affecting the pace of recovery as it withdrew its organic net sales target.