DIAGEO'S INTEREST IN WINE "REALLY NOTHING NEW."
After making some comments to a German newspaper last weekend, Diageo is down-playing reports that suggest the spirits giant is eager to expand its wine portfolio soon.
Earlier this week Diageo pointed out that showing interest in the wine category was “really nothing new,” and that the company is certainly not limiting its investments solely to wine.
Wine is a much more difficult business to enter due to the uncertainties that come with grape harvesting. So it makes sense that several reports are suggesting that Diageo is also eager to add another Bourbon brand, as the company only currently owns one (Bulleit Bourbon).
Nevertheless, all future investments are limited to “something that is growing faster than our current portfolio," stated Chief Paul Walsh. "On top of that, it has to produce a return over three or four years that is higher than our cost of capital."
Earlier this week Diageo pointed out that showing interest in the wine category was “really nothing new,” and that the company is certainly not limiting its investments solely to wine.
Wine is a much more difficult business to enter due to the uncertainties that come with grape harvesting. So it makes sense that several reports are suggesting that Diageo is also eager to add another Bourbon brand, as the company only currently owns one (Bulleit Bourbon).
Nevertheless, all future investments are limited to “something that is growing faster than our current portfolio," stated Chief Paul Walsh. "On top of that, it has to produce a return over three or four years that is higher than our cost of capital."
posted at 8:00 AM
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