Markets
TSN

Diageo (DEO) Continues to Boost Spirits Portfolio

Diageo plcDEO is geared to expand the spirits portfolio and enhance brand equity through innovation.

Recently the U.K.-brewer added a line of Smirnoff spirits - Smirnoff Electric - a high-energy alcoholic beverage crafted especially for the upcoming winter.

The spirit, available in four flavors - Berry, Apple, Mandarin and Guarana, comes in fluorescent-colored bottles that glow in the dark.

To provide a marketing boost to the launch, Diageo has partnered with musicians Kiesza and Djemba Djemba for the global music collaboration #WhatWeBring.

We note that the company wants to focus on its spirits business and has therefore planning to sell off its non-core assets. Recently, the company has decided to sell majority of its U.S. and British wine operations to the Australian company, Treasury Wine Estates. The $552 million deal is expected to close at the end of 2015.

Earlier in July too, Diageo had divested the luxury hotel and golf resort, Gleneagles, located in Scotland, to private equity firm Ennismore Capital, to cut costs and boost profits. The move re-affirmed its plans to focus more on the core spirits business.

Such initiatives are expected to give a boost to the company's spirits business, which are growing well.

In the recently reported third-quarter fiscal 2015, net revenue declined 0.7% and volume dipped 0.8% year over year.

Currently, Diageo has a Zacks Rank #4 (Sell). Investors interested in the beverage sector may consider Constellation Brands Inc. STZ sporting a Zacks Rank #1 (Strong Buy). A couple of consumer staples stocks worth a look are Tyson Foods Inc. TSN and Dr. Pepper Snapple Inc. DPS carrying a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

DR PEPPER SNAPL (DPS): Free Stock Analysis Report

TYSON FOODS A (TSN): Free Stock Analysis Report

CONSTELLATN BRD (STZ): Free Stock Analysis Report

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

To read this article on Zacks.com click here.

Zacks Investment Research

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


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

In This Story

TSN DEO STZ

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More