World's biggest spirits maker pops 6% on $1 billion cost-cutting plan

Diageo shares jumped Thursday after the company unveiled a $1 billion three-year savings plan to turn around the struggling business. The world's biggest spirits company, whose brands include Johnnie Walker scotch whisky, Smirnoff vodka, Tanqueray gin, Captain Morgan rum, Don Julio tequila and Guinness stout, said restructuring costs relating to the savings program will amount to $1.2 billion. "This new strategy, executing with a new, more agile, competitive and cost-effective operating model, gives us confidence that we can return Diageo to a business consistently creating value for shareholders," said CEO Dave Lewis in a statement. Lewis recently took the top position at the company, succeeding Debra Crew, who stepped down in July last year. Lewis noted on Thursday that there was "hard work ahead," particularly in North America where organic sales declined 8.4% in the year ending June 30. Shares were last trading 5.6% higher. The stock is down nearly 13% over the past 12 months. This is a developing story. Please refresh for updates.