Discover Diageo – one of the holdings in the European Focus Fund!
Tis the holiday party season! Discover the manufacturer of your favourite alcoholic beverage company – Diageo one of the holdings in the European Focus Fund!
Diageo is the leading global distiller of premium drinks with over 200 internationally renowned brand names, including: Johnnie Walker, Tanqueray, Smirnoff, Captain Morgan, Baileys, Guinness, and many more under its umbrella. The company’s aim is to be one of the best-performing, most trusted and respected consumer-products companies in the world. Although Diageo as we know it today was formed in 1997 following the merger of Guinness Brewery and Grand Metropolitan, some of its brand names date back to the 17th century.
Diageo holds many qualities which are attractive to the Fund’s investment strategy. First, the business is focused but has a global footprint with a wide customer-spread that spans from end-consumers to trade-buyers in the restaurant and bar industries. Secondly, through its many brand names Diageo has pricing-power. Thirdly, unlike food producers, the majority of Diageo’s products are non-perishables whose value tends to increase with age.
Diageo has been part of Fund’s European investment universe since before the inception of the Fund in August 2014 and it has been a holding of the portfolio since March 2016. Over-and-above the aforementioned attributes, Diageo has a well-defined ESG-strategy which should ensure a market-leading position for many years to come. The company has run an advanced diversity policy with many women holding key positions in the group’s senior management team. Equally important, Diageo’s social consciousness as a good corporate citizen is manifested in its ‘Society 2030: Spirit of Progress’ action plan. The aim of this program is to promote ‘positive drinking’ by changing the way the world drinks for the better. This means that Diageo is actively promoting moderation and is continuously addressing harmful use of alcohol by changing attitudes and tackling underage drinking, drink-driving, and binge drinking. Not only do we consider these objectives to be socially sound, but they also make commercial sense since they imply that consumers are advised to drink better – not more – and to trade up to higher quality and better-tasting drinks in a responsible fashion.
For more information about the European Focus Fund and its other holding, click here.
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