Drink giants’ risky new plan: quantity not quality | Reuters

Oct 1, 2024 · Drink giants’ risky new plan: quantity not quality. Beer sits on the bar at McSorley's Old Ale House as restrictions eased on indoor drinking in bars, allowing seating at the bar, …

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Drink Giants' Risky New Plan: Quantity Not Quality?

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Oct 3, 2024. Until fairly recently, giants like $80 billion Diageo and $40 billion Pernod Ricard focused on a strategy known as "premiumisation", which involved flogging pricier spirits and …

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Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Liquor makers like $80 bln Diageo until recently focused …

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Oct 31, 2024 · Drink giants’ risky new plan: quantity not quality Breakingviews category · October 2, 2024 UniCredit, the $68 bln Italian lender, grabbed a 9% stake in Germany’s $16 bln …

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FAQs about Drink giants’ risky new plan: quantity not quality | Reuters Coupon?

Does Diageo's booze strategy look wobbly?

But the strategy is looking wobbly. Last November, Diageo CEO Debra Crew revealed that customers in Latin America were also feeling the pinch from higher interest rates, and were similarly opting for less expensive booze. ...

Which gin brands outgrow mass-market Tequila?

The evidence suggested that brands with more of an aspirational appeal, like Don Julio tequila, would outgrow mass-market ones like Smirnoff vodka. The pricier drinks are also more profitable. Take Diageo. RBC analysts reckon that the Gordon’s gin maker’s operating margin is 7 percentage points higher for premium brands than the group-wide average. ...

What if premium drink sales fell to 20%?

If the proportion of premium drink sales eventually fell to 20%, the same analysts calculate that Crew’s target of 5% to 7% medium-term revenue growth would slip out of reach. The operating margin would also likely suffer. The pain has shown up in valuations, which have slipped from their pandemic-era highs. ...