DIAGEO NAMED TOP IN BEVERAGE SECTOR
According to Reuters, analysts are naming Diageo has one of the top beverage sector picks for 2007, based on a “strong performance and exposure to emerging markets.”
JP Morgan named Diageo as its top pick in the European beverages sector after the company out-performed Pernod Ricard for the first time in four years.
Another reason for Diageo’s recent gain in volume and sales? A strong presence in the U.S.
At the same time, Pernod’s pre-Allied portfolio is starting to show signs of slowing down in the U.S. and China, two very important growth drivers. However, things are expected to pick back up in the second half of 2007 and into 2008 as Pernod reshapes brands acquired from Allied in the U.S.
Credit Suisse analyst Michael Bleakley told Reuters:
"The problem they [Pernod Ricard] have is the Allied business was moving a lot slower than their existing business," he said. "And their existing business was being driven by the US and China, both of which are now slowing."
Despite recent reports to the contrary, don’t count on Diageo making wine acquisitions anytime soon. Although the company is clearly interested in that sector, any future mergers will be made after much thought and consideration.
Another acquisition contender is Bourbon, a category that could use a little boost from the drinks giant who only owns Bulleit Bourbon.
JP Morgan named Diageo as its top pick in the European beverages sector after the company out-performed Pernod Ricard for the first time in four years.
Another reason for Diageo’s recent gain in volume and sales? A strong presence in the U.S.
At the same time, Pernod’s pre-Allied portfolio is starting to show signs of slowing down in the U.S. and China, two very important growth drivers. However, things are expected to pick back up in the second half of 2007 and into 2008 as Pernod reshapes brands acquired from Allied in the U.S.
Credit Suisse analyst Michael Bleakley told Reuters:
"The problem they [Pernod Ricard] have is the Allied business was moving a lot slower than their existing business," he said. "And their existing business was being driven by the US and China, both of which are now slowing."
Despite recent reports to the contrary, don’t count on Diageo making wine acquisitions anytime soon. Although the company is clearly interested in that sector, any future mergers will be made after much thought and consideration.
Another acquisition contender is Bourbon, a category that could use a little boost from the drinks giant who only owns Bulleit Bourbon.
posted at 2:04 PM
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