Diageo Plc shares fell 8% after it warned on profit after a steep slowdown in growth in its Latin America and Caribbean division as customers there buy less and trade down to cheaper brands.

The maker of Johnnie Walker whisky and Smirnoff vodka said Friday that it now expects to see lower growth and profit in the second half of its fiscal year compared with last year, due to a materially weaker outlook in the region, which accounts for nearly 11% of Diageo’s net sales.

Diageo stock fell 8% in early trading following the unexpected warning.

Organic net sales in Latin America are expected to decline by more than 20% year-on-year in the fiscal first half, the world’s largest distiller said, citing macroeconomic pressures there which are causing customers to rein in spending.

Diageo said its other regions were all performing better although growth in Europe and Asia Pacific in the second fiscal half is likely to be slower than last year. Asia Pacific has been impacted by a slower than expected recovery in China.

The company, which only about six weeks ago left its outlook for the year unchanged, said it still believed in the fundamental strength of the business and reiterated its medium-term guidance for 5% to 7% organic net sales growth.