Reportedly, the world's leading brewer,
Diageo Plc.
(
DEO
), has been asked by the Federal Trade Commission (
FTC
) to provide the details of its digital marketing and data
collection.
The commission has taken this measure to stop the underage teens
getting access to the advertisements and promotions undertaken by
the alcohol company. This initiative is a part of FTC's periodic
review and it is aimed at finding how effective the industry's
voluntary guidelines are in reducing marketing messages to underage
audiences.
However, Diageo can be claimed to be a socially responsible
company and has taken active part in supporting the FTC's public
awareness programs. In September 2010, Diageo had announced its
active support for the agency's anti-underage drinking campaign, We
Don't Serve Teens. This campaign aims at making the adults aware
that they should stop providing alcohol beverages to the underage
drinkers and it is an endeavor to reduce underage drinking in
US.
In the same year, the company was honored by the Washington
Regional Alcohol Program (
WRAP
) for the second year in a row for its whole-hearted support of
WRAP's efforts to combat underage drinking and drunk driving in the
Washington Metropolitan Area.
Moreover, Diageo had urged its wine lovers to drink responsibly
during the holiday season of 2011.
The retail giant took several steps to promote responsible
drinking and also distributed thousands of free water bottles that
provided the party-goers with tips on responsible drinking. The
water bottles were distributed on the popular party nights of the
last holiday season in the busiest party circuits of London.
The FTC has also asked several other alcohol companies like
Anheuser-Busch InBev
(
BUD
) and Pernod Ricard to provide the same information by June 11 this
year.
Over the years, alcohol advertisements have followed stricter
rules and the commercials are now flashed in such a way so that 70%
of the audience is 21 and older. Previously in 2003 the threshold
was determined at only 50%.
Diageo, which faces stiff competition from
Molson Coors Brewing Company
(
TAP
) holds a Zacks #3 Rank, which translates into a short-term Hold
rating. Currently, we have a Neutral recommendation on the
stock.
ANHEUSER-BU ADR (
BUD
): Free Stock Analysis Report
DIAGEO PLC-ADR (
DEO
): Free Stock Analysis Report
MOLSON COORS-B (
TAP
): Free Stock Analysis Report
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