Diageo shares plunged over 15% on Wednesday, dragging down competitors like Brown-Forman, after the global spirits giant reported a 2.8% first-half sales drop and cut full-year projections. CEO Dave Lewis cited economic pressures in North America, where consumers are trading down to smaller packs. Diageo's bourbon portfolio, including Bulleit, saw specific declines, prompting global $625 million cuts.

Brown-Forman, parent of Jack Daniel's, fell more than 8% ahead of its March 4 results, signaling sector-wide weakness. Tequila sales, a key growth area, also softened, with Don Julio and Casamigos underperforming.