) is geared to enrich its luxury alcohol portfolio and has taken
over the super premium tequila brand, Peligroso, from
California-based Peligroso Spirits Company, LLC.
Peligroso is the latest addition to the premium brands,
following the DonJulio and DeLeón acquisitions. The acquisition
is a strategic fit for Diageo, as it will give access to the
growing super-premium tequila segment.
Peligroso, which originated in the highlands of Jalisco,
Mexico, is a popular brand in the action sports and surfing
culture of Southern California.
Peligroso comes in four variants - Cinnamon, Silver, Reposado
and Anejo. The brand, with a retail price range of $30 to $55 per
750ml bottle, is distributed in 12 U.S. states.
The deal comes three weeks after the U.K.-based brewer formed
a 50/50 joint venture with Combs Wine & Spirits to acquire
the brand DeLeón on Jan 8, 2014. The joint venture was formed in
2007 to develop and grow the Cîroc ultra-premium vodka brand.
Diageo, which currently carries a Zacks Rank #3 (Hold), is a
leader in the whiskey 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, Baileys and Guinness.
Diageo betters its products through continuous innovations.
Another better-ranked stock in the same sector is
Constellation Brands Inc.
) sporting a Zacks Rank #1 (Strong Buy). Other stocks in the
consumer staples sector worth considering are
Green Mountain Coffee Roasters Inc
ConAgra Foods Inc.
). Both the stocks carry a Zacks Rank #2 (Buy).
CONAGRA FOODS (CAG): Free Stock Analysis
DIAGEO PLC-ADR (DEO): Free Stock Analysis
GREEN MTN COFFE (GMCR): Free Stock Analysis
CONSTELLATN BRD (STZ): Free Stock Analysis
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