How bad will it get for Diageo, the drinks goliath with brands that include Johnnie Walker, Smirnoff and Gordon's? We should find out this week when the company unveils interim figures amid unprecedented gloom. Anecdotal evidence suggests that US wholesalers are de-stocking as the slump begins to hit demand. The company has already indicated that it is in recession mode, with an announcement that it is scaling back plans to build a brewery near Dublin. Elsewhere, it seems obvious that people will eventually trade down to cheaper brands and although Diageo owns labels at different price points, it will have to sell huge volumes or margins will come under pressure, if they haven't already. Avoid.