Americans can now savor their favorite Spanish wines as
Diageo Plc.'s (
ubsidiary Diageo Chateau & Estate Wine (DC&E) has gained
the exclusive rights to import two popular Spanish drinks - Campo
Eliseo and Campo Alegre - from the Toro collections of Spain
beginning Sep 1, 2013. These additions will augment Diageo's
already rich luxury import collection.
DC&E manufactures and markets premium wines from vineyards
around the world, including Napa Valley, Sonoma, the California
Central Coast, Argentina, France, Italy, New Zealand and
Australia. It also imports Bordeaux and Burgundy estate-bottled
With these two wines DC&E stepped into the booming Spanish
wine sector. Campo Eliseo and Campo Alegre have been crafted by
the famous winemaker Michel Rolland, his wife, Dany, and the
iconic Bordeaux-based wine maker, Francois Lurton. The wines,
famous for their strong taste and longevity, are made from 100%
Tinta De Toro grapes, grown in Toro, central Spain.
While Campo Eliseo is brewed from grapes growing in 50 to 75
year old vines, Campo Alegre is made from younger vines. Campo
Alegre has a milder taste and is priced at $40 per bottle. Campo
Eliseo, on the other hand, is priced at about $80 per bottle.
Diageo will offer the new varieties in the markets of New York,
Florida, Washington, DC, Texas and California.
Management feels that the global luxury market, especially the
luxury alcohol category, is expected to reach approximately $400
billion within the next few years. Moreover, the growing
affluence of the emerging middle-class consumers has prompted
Diageo to ensure easy availability of spirits through flavor
extensions, new packaging and drink formats.
Other Stocks to Consider
Diageo currently holds a Zacks Rank #3 (Hold). Other consumer
staple stocks worth considering are
Boston Beer Co. Inc.
Constellation Brands Inc.
Green Mountain Coffee Roasters Inc
). While Boston Beer and Green Mountain carry a Zacks Rank #1
(Strong Buy), Constellation Brand carries a Zacks Rank #2
DIAGEO PLC-ADR (DEO): Free Stock Analysis
GREEN MTN COFFE (GMCR): Free Stock Analysis
BOSTON BEER INC (SAM): Free Stock Analysis
CONSTELLATN BRD (STZ): Free Stock Analysis
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