Diageo Adds Peligroso to Portfolio - Analyst Blog


Leading brewer Diageo plc ( DEO ) 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. ( STZ ) sporting a Zacks Rank #1 (Strong Buy). Other stocks in the consumer staples sector worth considering are Green Mountain Coffee Roasters Inc . ( GMCR ) and ConAgra Foods Inc. ( CAG ). Both the stocks carry a Zacks Rank #2 (Buy).

CONAGRA FOODS (CAG): Free Stock Analysis Report

DIAGEO PLC-ADR (DEO): Free Stock Analysis Report

GREEN MTN COFFE (GMCR): Free Stock Analysis Report

CONSTELLATN BRD (STZ): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: CAG , DEO , GMCR , STZ



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