The premium hard beverage company
Diageo Plc. (
DEO
)
expanded its product portfolio by adding two new lines of frozen
malt beverage pouches in the rum and vodka category. The company
now offers 'freeze and squeeze' pouches under its Smirnoff vodka
and Parrot Bay rum brands.
These frozen pouches were aimed to make the cocktail parties
more hassle free during the summer months by shortening the
elaborate preparation process of ice crushing and blending.
Moreover, the users of the handy pouches will be freed of the messy
cleaning up work after the party is over. The drinks are naturally
flavored premium malt products.
While Parrot Bay freeze and squeeze pouch is available in
varieties including Frozen Strawberry Daiquiri, Frozen Mango
Daiquiri and Frozen Pina Colada, Smirnoff offers flavors such as
Frozen Strawberry Lemonade, Frozen Blue Raspberry Lemonade and
Frozen Cherry Limeade.
Smirnoff and Parrot Bay are flagship brands of Diageo's vodka
and rum series and enjoys popularity across the world.
In June this year, the company announced that it is expanding
its Chateau & Estate Wine portfolio by adding three more
varieties: Stark Raving, Butterfly Kiss and Rose'N'Blum. Also in
June, Diageo bought Cabin Fever Maple Flavored Whiskey in order to
tap the growing markets of flavored whiskey and craft
distilling.
Diageo's earnings of 89 cents per share in the first half of
fiscal year 2012 went up 16% as compared with 75 cents a year ago.
The growth in earnings was driven by increased investments in the
form of recruitment as well as promotional campaigns behind each
brands and a strong foothold in Western Europe.
Management did not provide any earnings guidance for fiscal
2012, but has revealed that it will remain cautious regarding the
consumer spending and economic trends of the global economy.
The introduction of the new freeze and squeeze pouches of vodka
and rum is expected to contribute to the earnings of the company in
the fiscal year 2012 by generating sales and widening its customer
base. The newer innovations and product differentiation also adds
value to the already strong brand portfolio of the company.
The Zacks Consensus Estimate is pegged at $5.82 for the fiscal
year 2012 and $6.40 for fiscal year 2013.
Diageo has been adding flavors to its strong brand portfolio and
is creating differentiated value propositions for its customers in
order to have an edge over its close rivals like
Molson Coors Brewing Company
(
TAP
) and
SABMiller Plc
(
SBMRY
).
Based in London, United Kingdom, Diageo is involved in
producing, distilling, brewing, bottling, packaging and
distributing spirits, wine and beer.
Currently, we have a long-term Neutral recommendation on Diageo,
which carries a Zacks #3 Rank (short-term Hold rating).
DIAGEO PLC-ADR (DEO): Free Stock Analysis
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(SBMRY): ETF Research Reports
MOLSON COORS-B (TAP): Free Stock Analysis
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