This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Diageo plc is a British multinational alcoholic beverage company that derives its entire revenue from the production, distribution, and sale of spirits and beer. With over 200 brands sold in nearly 180 countries, including Johnnie Walker, Guinness, Smirnoff, and Tanqueray, alcohol is the company's sole product line.
In February 2020, the U.S. Securities and Exchange Commission charged Diageo with failing to make required disclosures of known trends. The SEC order found the company had shipped products in excess of demand to meet internal sales targets, a practice known as "channel stuffing," and concealed the negative financial impact of this inventory buildup from investors. Diageo settled the charges, agreeing to pay a $5 million civil penalty. In May 2025, a class action lawsuit filed in U.S. federal court further accused Diageo of adulterating some of its popular luxury tequilas and misleading consumers about the products' quality and composition.
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A digest of changes to our exclusion list — new additions, removals, and the evidence behind them. We review the list continuously as new evidence surfaces.
Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
Ethical Capital LLC is a state-registered investment adviser in Utah (CRD #316032). Registration does not imply a certain level of skill or training.