Topic: How To Invest

Pat, what is your opinion of Diageo plc? Its share price has come down recently.

Article Excerpt

Diageo plc, $45.21, symbol DEO on New York (Shares outstanding: 624.9 million; Market cap: $28.3 billion), is the world’s largest premium alcoholic beverage company, with a collection of brands in the spirits, beer and wine categories. These respectively account for 77%, 21% and 6% of the company’s sales. London-based Diageo was formed in 1997 through the merger of GrandMet and Guinness. Diageo holds some of the 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 and vodka, 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, such as Beaulieu Vineyard, Sterling Vineyards, Rosenblum Cellars, Chalone Vineyard, Blossom Hill and Piat d’Or. Aside from Guinness, Diageo’s beer brands include Harp lager, Smithwick’s ale, Red…