Does Diageo Hold Long-Term Potential?
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Tue, Feb. 2, 11:24 AM
- A plan by Kroger (KR -1%) to use a private distributor to manage shelf space in alcohol aisles is creating a stir with large sellers such as Anheuser-Busch InBev (BUD -0.7%) and Diageo (DEO -0.6%).
- Trade groups repping the beer and spirits majors say the Kroger initiative to charge quarterly fees to pay for the service may violate federal and state laws.
- Kroger wants to make the change in order to adapt quicker to consumer tastes and trends.
Thu, Jan. 28, 8:35 AM
- Diageo (NYSE:DEO) reports organic sales rose 1.8% for the six month period ending on December 31, 2015.
- Volume was up 7% in Africa and 4% for Latin America/Caribbean, while falling 2% in North America. The drop in volume in North America was anticipated with Diageo moving to a demand model.
- The company's operating profit fell 3% to £1.613B.
- Diageo results release
- DEO -0.49% premarket to $105.90.
Dec. 23, 2015, 7:23 AM
- Diageo (NYSE:DEO) is looking to get vodka brand Smirnoff back on track after losing market share over the last few years. Smaller brands such as Tito's, Ciroc, and Burnett's all added market share at the expense of heavyweights Smirnoff and Pernod Ricard's (OTCPK:PDRDF, OTCPK:PDRDY) Absolut.
- Sales of Smirnoff fell off 4% after a price hike didn't go over with consumers well and new products didn't sizzle.
- "Adding 42 flavors, all of which are almost the same, was a bad decision," noted global brand director Matt Bruhn.
Oct. 29, 2015, 9:33 AM
- Credit Suisse upgrades Diageo (DEO +0.4%) to an Outperform rating after having the beverage company set at Neutral.
- The ratings action arrives amid an intense period of M&A activity and speculation in the beer and spirits sectors.
- Shares of Diageo are up 10% over the last month and trade on the upper half of their 52-week range.
Oct. 28, 2015, 11:30 AM
- United Spirits (OTC:UQNTY) says it will focus on premium brands in India with growth for the high-end category outpacing lower-priced spirits products.
- The Diageo (NYSE:DEO) property sells over 150 brands in India, but is expected to shrink that number through consolidation.
- Diageo reported a 5% increase in organic volume in India for the last fiscal year.
Oct. 13, 2015, 7:37 PM
- Diageo (NYSE:DEO) has an agreement to sell most of its UK and U.S. wine assets to Treasury Wine Estates (OTCPK:TSRYY), the Australian firm that is the world's biggest stand-alone wine maker, for $552M.
- Brands Diageo is letting go include Sterling Vineyards, Blossom Hill and Piat D'or, as Treasury looks to double its "masstige" (mass prestige) revenues in the U.S.
- Treasury is the maker of Penfolds. It's announcing a rights issue to raise A$486M (about $350M) to fund the deal.
- Diageo was widely expected to shop its wine business as it focused on core business. "Wine is small," CEO Ivan Mendes said this summer. "It plays a role in the U.S. right now, but it is not going to get bigger for us.”
- After hours, Diageo is up 0.3%.
- Previously: Diageo reportedly looking to sell wine business (Sep. 30 2015)
Oct. 7, 2015, 1:41 PM
- There was a major beer deal struck today, although it didn't involve Anheuser-Busch InBev and SABMiller.
- A little bit under the radar, Diageo (NYSE:DEO) and Heineken (OTCQX:HEINY) finalized an agreement to swap assets. Diageo sold a 57% stake in Desnoes & Geddes to Heineken to give the Dutch brewer 73% of the Red Stripe brewer. Diageo also sold 49.99% of Asian distributor GAPL Pte to Heineken.
- Heineken traded back a 20% stake in Guiness Ghana Breweries to Diageo.
- The asset deals will result in a net payment of $780.5M to Diageo.
Sep. 30, 2015, 6:27 PM
- The Telegraph reports Diageo (NYSE:DEO) is pushing ahead with the sale of its wine brands (Blossom Hill, Piat d'Or, Rosenblum, etc.), as part of the drinks giant's ongoing attempts to unload non-core businesses.
- Australia's Treasury Wine Estates is said to be "a leading suitor" for the business, No word on a sale price.
- CEO Ivan Mendes suggested in July Diageo could sell its wine ops. “We do look at the portfolio, and I would say that without getting into specifics you can expect us to be active managers of our portfolio ... Wine is small. It plays a role in the US right now, but it is not going to get bigger for us.”
Sep. 16, 2015, 9:56 AM
- Beer stocks are in party mode with Anheuser-Busch InBev (BUD +6.9%) closing in on making an offer for SABMiller (OTCPK:SBMRY +20.5%).
- Consolidation within the industry is seen supporting pricing and raising the M&A profile of large and smaller players alike.
- Gainers: Heineken ADRs (OTCQX:HEINY) +3.7%, Diageo (NYSE:DEO) +2.9%, Molson Coors (NYSE:TAP) +14.5%, Carlsberg (OTCPK:CABGY) +3.7%, Craft Brew Alliance (OTCPK:CABGY) +3.7%, Constellation Brands (NYSE:STZ) +0.8%, Boston Beer (NYSE:SAM) +1.6%.
- Previously: AB InBev prepping offer for SABMiller (Sep. 16 2015)
- Previously: Molson Coors pops with A-B circling SABMiller (Sep. 16 2015)
Sep. 11, 2015, 9:07 AM
Sep. 8, 2015, 8:30 AM
Jul. 30, 2015, 8:56 AM
- Diageo (NYSE:DEO): Q2 EPS of £0.95
- Revenue of £10.81B (+5.4% Y/Y)
Jul. 28, 2015, 8:22 AM
- Diageo (NYSE:DEO) says it will end a partnership with Heineken (OTCQX:HEINY) in South Africa as it looks to become more aggressive in the region.
- The company plans to sell stakes in joint venture entities to position itself to go head-to-head against Anheuser-Busch InBev and SABMiller.
- A partnership with local brewer Namibia Breweries will continue.
Jul. 24, 2015, 10:36 AM
- Diageo (DEO +0.7%) says it's working to respond to SEC requests for information on distribution and inventory.
- The regulator is probing the company to see if excess supply was shipped in order to boost short-term results.
- The latest development follows a period this summer when Diageo turned over a number of top execs.
- Shares of Diageo are cutting into yesterday's late-day slide.
Jul. 23, 2015, 3:10 PM
Jun. 30, 2015, 10:55 AM
Diageo Plc produces and distributes alcoholic beverages. It operates through the following geographical segments: North America; Europe; Africa; Latin America and Caribbean; and Asia Pacific and Corporate. Its products are offered under brands which include Johnnie Walker, Crown Royal, JeB,... More
Sector: Consumer Goods
Industry: Beverages - Wineries & Distillers
Country: United Kingdom
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