Stock of the Week: Diageo

With revellers stuck at home for much of last year, life has been hard for drinks companies like Diageo. But managers like Nick Train are a big fan of the company's brands

James Gard 22 January, 2021 | 9:36AM
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Our stock of the week by a large margin is drinks maker Diageo (DGE), which has just launched an alcohol-free Gordon’s gin in time for Dry January.

You may (or may not) have drunk more during lockdown, but opportunities to imbibe Diageo’s products like Guinness, Smirnoff and Captain Morgan Rum in pubs, night clubs and restaurants have been severely curtailed. And consumer trends are changing – low or no alcohol drinks now make up 33% of the “off” trade, which represents drinks bought from supermarkets and the like and consumed at home. There's growing evidence than younger generations drink less alcohol than their forebears, with the health, sports and nutrition craze part of that lifestyle shift. 

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James Gard  is content editor for Morningstar.co.uk

 

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