Topic: How To Invest

Hello Pat, Thank you for your sage advice. Could I have your comments please on the British spirits company Diageo? Thank you.

Article Excerpt

Diageo plc, $57.21, symbol DEO on New York (ADRs outstanding: 624.9 million; Market cap: $35.8 billion), is the world’s largest premium alcoholic-beverage company. (Each American Depositary Receipt represents four Diageo common shares.) London-based Diageo owns a collection of brands of spirits (77% of sales), beer (21% of sales) and wine (6% of sales). The company was formed in 1997 through the merger of GrandMet and Guinness. Diageo owns some of the most dominant brands in the alcoholic-beverage business, including Guinness stout, Smirnoff vodka, Johnnie Walker scotch whiskies, Captain Morgan rum, Baileys Original Irish Cream liqueur, J&B scotch whisky and Tanqueray gin. Its other spirit brands include Crown Royal Canadian whisky, Buchanan’s whisky, Gordon’s gin, Windsor Premier whisky, Seagram’s whisky, Old Parr whisky, Bushmills Irish whisky, Bundaberg rum and Cacique rum. The company also owns a number of wine brands. These include Beaulieu Vineyard, Sterling Vineyards, Barton & Guestier, Justerini & Brooks, Blossom Hill and Piat d’Or. Aside from Guinness, Diageo’s beer brands…