Tuesday, September 25, 2012, 4:48 AM
Diageo (DEO) is in talks with India's United Spirits and its parent firm United Breweries about buying a stake in United Spirits, although there's no word on specifics. A report earlier this month said Diageo could purchase a 27% holding for 30B rupees ($563M). Any deal would continue the U.K. company's strategy of expanding in fast-growing emerging markets. (PR)
Thursday, August 23, 2012, 2:53 AMDiageo (DEO): FY net profit +2% to £1.94B ($3.08B), operating profit before items +11% to £3.20B vs. consensus of £3.18B. Sales +8.3% to £10.76B vs. £10.75B. Organic sales +6%, in line with Diageo's medium-term outlook. Dividend +8% to 43.5 pence. Earnings driven by growth in Asia-Pacific and Latin America, and the recovering U.S. spirits market. (PR)
Comment![Earnings, Consumer, Top Stories]
Monday, August 20, 2012, 3:56 AM
Diageo (DEO) is reportedly in advanced negotiations to buy Jose Cuervo, the world's top tequila brand, from Mexico's Beckmann family for $3B in cash and shares. Diageo had been in talks to buy a 20%-30% stake, but it seems as if discussions have moved on. Separately, Diageo has held talks to acquire a stake in United Spirits, which owns Whyte & Mackay whiskey.
Comment![Consumer, Top Stories, M&A]
Wednesday, June 6, 2012, 7:54 AM
Diageo (DEO) plans to invest over $1.5B to help it increase the production of whiskey in order to meet increasing demand in Asia, Latin America, and Africa. Top sellers Ballantine's and Chivas Regal have helped the company increase Scotch whiskey sales 50% over the last five years. Shares +2.2% premarket.
Comment![Consumer, Global & FX]
Monday, May 28, 2012, 5:27 AM
Diageo (DEO) agrees to acquire Ypioca, a maker of popular Brazilian spirit cachaca, for £300M ($469M) from its family owners as it continues its strategy of expanding in high-growth emerging markets. The acquisition comes as Diageo carries out discussions to purchase a stake in Jose Cuervo, the world's top tequila brand. (PR)
3 Comments[Top Stories, M&A, Consumer]
Wednesday, May 16, 2012, 8:55 AM
A Hispanic population in the U.S. that has passed the 50M mark has caught the attention of advertisers at the annual industry conference to line up TV ads for next season's shows. One of the biggest players is Disney (DIS) with its ESPN Deportes Spanish-language sports network already drawing solid ratings, while execs at CBS, NWSA, CMCSA, DEO, and DISCA are also pitching shows aimed at drawing in Hispanic viewers.
Tuesday, May 15, 2012, 8:03 AM
Diageo (DEO) could seal a deal to buy a 20%-30% stake in Jose Cuervo, the world's top tequila brand, within the next few weeks in a transaction that would value the business at $3B+, Reuters reports. Any agreement may allow Diageo to acquire majority control at a later date. (previous)
1 Comment[M&A, Consumer]
Monday, April 2, 2012, 2:47 AM
Diageo (DEO) has reportedly hired Goldman Sachs and HSBC for advice on gaining control of Jose Cuervo from family owners. Cuervo is the world's leading tequila brand and is expected to be valued at over $3B.
Thursday, March 29, 2012, 10:36 AM
Diageo (DEO) is in talks to buy a minority stake in Jose Cuervo, the world's leading tequila brand with an estimated value of $3B+, Reuters reports. The aim of Diageo CEO Paul Walsh is to gain control, and he's conditioning the renewal of a distribution deal in mid-2013 on Diageo being able to buy a stake.
Monday, March 26, 2012, 8:39 AM
Diageo (DEO) CEO Paul Walsh keeps his eye on making key acquisitions, as he brushes aside ongoing speculation on the end of his long tenure at the drinks company. The Diageo boss says that he plans to stay on through mid-2014, when the 3-year financial targets he set for the company come to an end.
Comment![Global & FX]
Friday, March 2, 2012, 11:02 AM
Sanford Bernstein analyst Trevor Stirling warns not to place too much emphasis on the rosy forecasts of global brewers that think they can move into emerging markets and transform billions into beer drinkers. Regulation, taxes, and labor requirements stand in the way, as does firmly engrained religious dogma. "You have a reasonably high proportion of a Muslim population who won’t drink alcohol...Also, if you’re a devout Hindu, you won’t drink alcohol."
1 Comment[Global & FX, Quick Ideas]
Wednesday, February 29, 2012, 8:13 AM
Diageo (DEO) promotes Ivan Menezes to COO and widens his responsibilities to all of its global markets, apparently establishing him as the frontrunner to one day replace CEO Paul Walsh, who was also COO before taking the top job. The slight flaw in the theory is that Walsh is only 56, so could be around from while to come. Shares -0.4% in London.
Monday, February 13, 2012, 12:35 PM
The stuttering economy might have caused much angst last year and stocks may have been exceptionally volatile at times, but that didn't turn Americans to drink any more than usual. Sales of beer, the "preferred alcohol beverage of Americans," edged up just over 2% to $98B in 2011. (PR)
Thursday, February 9, 2012, 6:31 AMDiageo (DEO): FH1 net profit -20% to £953M ($1.51B) due to tax write-down of £524M, sales +8% to £5.76B. Underlying sales +7%. Emerging market +18%; this and slow recovery in N. America helps to offset a flat Europe. Half-year dividend 16.6 pence a share. CEO Paul Walsh is cautious for 2012, but FH1 has "positioned us well." (PR)
Wednesday, February 8, 2012, 2:33 PM
Diageo (DEO -1.1%) files a registration statement with the SEC to sell a mix of securities to be used for general corporate purposes. The company's ADRs traded at an all-time high yesterday, as the global beverage seller's organic growth continues to outpace rivals.
Comment![Global & FX]