Diageo Enhances Whiskey Line-Up - Analyst Blog
April 09 2014 - 1:00PM
Zacks
Diageo plc’s (DEO)
subsidiary House of Haig introduced its latest Haig Club Single
Grain Scotch Whiskey in the U.K. Moreover, the leading brewer has
decided to rope in soccer player David Beckham and British
entrepreneur, Simon Fuller, to add celebrity power to the
innovation.
Haig Club, to be launched in late
2014, has been developed by the House of Haig. It has been prepared
by three types of grain whiskey and combines the taste of butter
scotch and toffee. The whiskey has been approved by renowned taster
Dave Broom and has been described as a ‘versatile spirit’.
House of Haig, owner of Haig
Blended Scotch Whisky and Dimple Scotch Whisky, is Scotland’s
oldest grain whisky producer. It started operating in 1824 from
John Haig’s Cameronbridge Distillery.
Diageo is putting a lot of focus on
the growing whiskey category. In 2012, it announced plans to invest
£1 billion ($1.64 billion) to increase Scotch whisky production by
2017. Diageo is a leader in the whiskey category and strengthens
the segment by expanding its existing whiskey production facilities
and continuous innovation.
The U.K.-based brewer released the
first-half 2014 earnings in Jan 2014. Earnings went up 4% year over
year on a local currency basis to 62.6 pence (99.2 cents* per
share) from 60.2 pence (95.9 cents** per share).
The increase in profit was the
result of strong organic growth of Diageo’s strategic brands.
Increasing reach to the burgeoning middle class coupled with fast
penetration into emerging markets also contributed to the positive
results.
The Zacks Rank #2 (Buy) stock is
one of the top players in the spirit category. The company also
commands a leading position both in the beer and vodka markets with
a strong portfolio of globally recognized flagship brands,
including Smirnoff, Johnnie Walker, Captain Morgan, Bailey's and
Guinness.
Some better-ranked stock in the
consumer staples sector worth considering are Supervalu
Inc. (SVU), Diamond Foods Inc. (DMND) and
Inventure Foods Inc. (SNAK). All the stocks carry
a Zacks Rank #2 (Buy).
*£1=$1.58444 (average price of
the half year ended Dec 31, 2013).
**£1=$1.59292 (average price of
the half year ended Dec 31, 2012)
DIAGEO PLC-ADR (DEO): Free Stock Analysis Report
DIAMOND FOODS (DMND): Free Stock Analysis Report
INVENTURE FOODS (SNAK): Free Stock Analysis Report
SUPERVALU INC (SVU): Free Stock Analysis Report
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