Happy hour or hangover? What should investors in Diageo make of currency ructions in some of its biggest growth markets?
The truth is that the size of the hit the drinks group will take to its annual sales and operating profits from the turbulence in emerging markets is small relative to its overall revenues. However, it does shine a spotlight on Diageo’s exposure to developing as well as established markets and shareholders need to be aware of the potential for that morning-after feeling.
Diageo is the world’s biggest producer of spirits, including Tanqueray gin, Captain Morgan rum and J&B whisky. It also produces beers including Guinness, but 80 per cent of its portfolio consists of the hard stuff. Founded in 1997 through the combination of