Thu, Oct. 13, 9:59 AM
- Open for business is the Spirited Funds/ETFMG Whiskey & Spirits ETF (WSKY), mostly comprised of companies getting most of their money from making or selling booze. The expense ratio of 0.75%.
- The tracked index contains two tiers, with those companies that include the operation of a whiskey distillery and the production of alcoholic beverages classified as “core” companies, and making up at least 85% of the index.
- The "non-core" companies include luxury goods firms with at least $500M in annual whiskey and spirits sales, as well as soft-drink companies involved in whiskey distribution or getting the majority of revenues from making mixers.
- As of late September, Diageo (NYSE:DEO) had the largest weighting at 24.21%, followed by Pernod (OTCPK:PDRDF, OTCPK:PDRDY) at 10.52%, and Thai Beverage (OTCPK:TBVPF, OTCPK:TBVPY) at 6.07%.
Wed, Oct. 5, 10:40 AM
- Diageo (DEO -1.5%) is holding back on increasing its stake in Guinness Nigeria due to tough market conditions.
- The company currently holds 54.3% of the shares in the Nigeria-listed beer seller.
- Nigeria has been hit hard by the extended downturn in the oil market.
Wed, Aug. 31, 7:13 AM
- U.K. watchdog Advertising Standards Authority banned an advertisement for Diageo's (NYSE:DEO) Captain Morgan rum.
- The agency took the stance that the spot implied alcohol consumption added to a person's confidence and popularity.
- Diageo defended the banned ad, saying the man with the Captain Morgan face didn't go through a transformational moment due to rum intake.
Sat, Aug. 6, 11:06 AM
- The heavy investment by the automobile industry on self-driving technology could end up benefiting restaurants and beer companies, according to some conjecture from Morgan Stanley.
- The math from MS works out like this: You take the 39% of the 2.1B global drinking population that drives and factor in that their average intake of alcohol would increase from 1.5 drinks to 2.5 drinks per week with a self-driving car to haul them home. Assign a value per drink of $2.32 and you have an incremental annual benefit of $98B for the restaurant and alcohol industry.
- There's conflicting data on the impact of Uber (Private:UBER) and Lyft (Private:LYFT) on alcohol consumption, so the Morgan Stanley theory has a ways before playing out. Still, Morgan's Adam Jonas is convinced the automobile industry is heading toward a future of fully autonomous transport in which the driving experience is nostalgic. The buying habits of younger millennials support the thesis to a degree.
- During the Tesla Motors (NASDAQ:TSLA) earnings call earlier this week, Elon Musk predicted global demand for self-driving cars would reach 2.5B. Execs with General Motors (NYSE:GM), BMW (OTCPK:BMWYY), and Toyota (NYSE:TM) also talked autonomous models in their CCs.
- If Jonas and Musk are anywhere close to correct, the list of companies that could benefit from the autonomous push includes Buffalo Wild Wings (NASDAQ:BWLD), Dine Equity (NYSE:DIN), Anheuser-Busch InBev (NYSE:BUD), Molson Coors (NYSE:TAP), Boston Beer (NYSE:SAM), Brinker International (NYSE:EAT), Bloomin' Brands (NASDAQ:BLMN), Ignite Restaurant Group (NASDAQ:IRG), Kona Grille (NASDAQ:KONA), Diageo (NYSE:DEO), Constellations Brands (NYSE:STZ), and Craft Brew Alliance (NASDAQ:BREW).
- Related ETF: BITE.
Fri, Aug. 5, 12:57 PM| Fri, Aug. 5, 12:57 PM | 1 Comment
Mon, Jul. 25, 11:28 AM
- Alcohol companies are pushing out a wide variety of new healthier drinks, including more vegan, gluten-free, and all-natural products.
- Anheuser-Busch InBev (BUD -0.2%) is at the forefront of the initiative, with a pledge to increase its mix of low-alcohol beer or alcohol-free beer to 20% of global beer volume by the end of 2025. Sales in the category grew to $9.96B last year, up 19% in five years.
- Heineken (OTCQX:HEINY), Carlsberg (OTCPK:CABGY, OTCPK:CABJF), and Diageo (DEO -0.2%) also have healthier products on tap.
Tue, Jul. 19, 9:10 AM
- Diageo (NYSE:DEO) says it is working with employee groups to lower costs tied to a legacy pension plan.
- The legacy pension plan is a remnant from the merger of Guinness and Grand Metropolitan.
- Just.drinks.com estimates the plan in question costs Diageo £43M ($57M).
- Diageo ADRs are down 1.69% in premarket trading.
Mon, Jun. 6, 5:09 AM
- Global alcohol makers are bracing for a potentially precedent-setting court decision in Scotland over whether the country will become the first to implement a floor on alcohol prices - a move the industry feels could unleash an international wave of regulation.
- After years of the case bouncing around the legal system, the Court of Session will hold a hearing on minimum unit pricing tomorrow and is expected to make a decision by August.
- Related tickers: BUD, DEO, ABEV, SAM, BORN, CCU, STZ, TAP, VCO, BF.A, BF.B
Sat, May 21, 12:49 PM
- Laslzo Birinyi still sees underlying strength in the stock market, despite the myriad of economic, technical, and political fears holding back investor enthusiasm.
- In particular, the well-known investor has his eyes on AutoZone (NYSE:AZO) and builder NVR (NYSE:NVR) as "special situations" stocks.
- Kraft Heinz (NASDAQ:KHC) also makes the list due to its lack of volatility amid a volatile market which could indicate upside down the road. On that point, a quick screen of other consumer goods stocks like Kraft that have weathered the uneven read on U.S. consumer spending and global demand over the last month may tip off some other value picks.
- Here's ten consumer good stocks with a low recent volatility measurement, below average forward P/E ratio, and +2% dividend yield: DEO, UN, UL, CAJ, RMCF, KO, PEP, BUD, PM, PG, TM.
- Related ETFs: IYK, UGE, SZK.
Wed, May 18, 9:37 AM
- Diageo (NYSE:DEO) appoints Javier Ferran to the chairman position. Ferran is a former CEO of Bacardi and currently a non-executive director at SABMiller for a term that expires in July.
- Ferran says Diageo has a consumer facing culture and a rigorous approach to decision-making. He arrives with shares of the alcohol company down about 4% over the last year.
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)