Edmund Shing explains why now is the perfect time to invest in British beverages giant Diageo.
1) Global spirit maker
Diageo is a multinational alcoholic beverages company, a member of the FTSE 100 index (UK Code: DGE) and currently holds a market value of £48bn ($73.7bn, €68.3bn).
2) Big brands
The company has a number of huge global alcohol brands, such as Johnnie Walker whisky, Smirnoff vodka, Baileys Irish Cream and Guinness. Together these brands make up 30% of Diageos sales.
3) Growth
Diageo has seen decent growth in its spirits lines, with vodka sales rising by 4% in the first half of this year.
4) Region-diversified
The company has a global reach, with 1/3 of sales in North America, 1/4 from Europe and over 40% from emerging markets such as China.
5) Christmas
The Christmas holiday season is fast approaching and thats a great time for spirit makers. This is because they do a disproportionately high amount of their sales over Christmas as we all get merry.
Edmund Shing is Global Head of Equity Derivative Strategy at BNP Paribas in London. He holds a PhD in Artificial Intelligence.
