Majestic Wine shares plunged 33% in morning trading, putting it on track for the worst daily drop in the company’s history after it warned that earnings will fall below market levels this year (The Financial Times £).

The chief executive of Majestic Wine Rowan Gormley was forced to defend his turnaround strategy yesterday after a surprise profit warning sent the wine seller’s shares sliding. He acknowledged that the company had been a victim of the stronger-than-expected start to the turnaround that he instituted, leading to a “degree of overexcitement” in the investment community. (The Times £)

The UK’s largest specialist wine retailer has now launched an internal review into its commercial arm after its year-on-year sales growth flattened and margins decreased (The Telegraph). Majestic said it had overspent on testing a direct mailing campaign at Naked Wines in the US and has now stopped the initiative (The Guardian). Gormley insisted his turnaround plan was bearing fruit in Majestic’s retail arm, which enjoyed its first rise in like-for-like sales in four years for the 12 months to March 28 (The Daily Mail)

The FT’s Lombard column looks at Majestic, writing: “Lombard holds to its view that the Naked takeover was overpriced, as are shares trading at 26 times forward earnings. Château Majestic is not corked badly enough for investors to send back. But they should not buy another bottle.” (The Financial Times £)

Hedge funds are being warned that they could inadvertently put Anheuser-Busch InBev’s £79bn takeover of SABMiller at risk unless they convert their derivatives in the Peroni and Grolsch brewer into shares. (The Times £)

A Labour MP has accused Marks and Spencer of threatening to sack “thousands of staff” over the Christmas period if they do not accept new proposals that could cut their take home pay (The Times £). Siobhain McDonagh says leaked document shows retailer prepared to axe in-store jobs if workers fail to accept overhaul (The Guardian).

Britain’s oldest brewer, Shepherd Neame, has reported record turnover and a rise in profits as strong performance from its hotels and seaside pubs boosted trading (The Financial Times £, The Telegraph).

Diageo, the spirits and beer company that produces Smirnoff vodka and Johnnie Walker scotch, has maintained a relatively upbeat tone over its turnround, noting the momentum it built up last year has continued to propel it so far this year too. (The Financial Times £)

The Co-operative Group will embark on the latest stage in its turnaround plan by rolling out a new phase of its loyalty scheme intended to revitalise its relationship with its owner members. Its management team – led by group chief executive Richard Pennycook – is aiming to encourage its 5 million members to become more engaged with the business. (The Guardian)

The Co-op Group will this week slash the value of its bank shareholding for the second time in six months, reflecting deteriorating investor sentiment towards the industry with interest rates at record lows. (Sky News)

The stockbroker to the tobacco group behind Lambert & Butler and Gauloises left investors spluttering yesterday after it downgraded the company a week before its results. (The Times £)

More small and medium-sized businesses are pessimistic about the future than positive for the first time in four years, according to an industry body. The first survey by the Federation of Small Businesses since the Brexit vote suggests the second largest fall in confidence in the index’s history. (The BBC)