Diageo Adds Peligroso to Portfolio


Leading brewer Diageo plc (DEO) is geared to enrich its luxury alcohol portfolio and has taken over the super premium tequila brand, Peligroso, from California-based Peligroso Spirits Company, LLC.

Peligroso is the latest addition to the premium brands, following the DonJulio and DeLeón acquisitions. The acquisition is a strategic fit for Diageo, as it will give access to the growing super-premium tequila segment.

Peligroso, which originated in the highlands of Jalisco, Mexico, is a popular brand in the action sports and surfing culture of Southern California.

Peligroso comes in four variants — Cinnamon, Silver, Reposado and Anejo. The brand, with a retail price range of $30 to $55 per 750ml bottle, is distributed in 12 U.S. states.

The deal comes three weeks after the U.K.-based brewer formed a 50/50 joint venture with Combs Wine & Spirits to acquire the brand DeLeón on Jan 8, 2014. The joint venture was formed in 2007 to develop and grow the Cîroc ultra-premium vodka brand.

Diageo, which currently carries a Zacks Rank #3 (Hold), is a leader in the whiskey category. The company also commands a leading position both in the beer and vodka markets with a strong portfolio of globally recognized flagship brands, including Smirnoff, Johnnie Walker, Captain Morgan, Baileys and Guinness. Diageo betters its products through continuous innovations.

Another better-ranked stock in the same sector is Constellation Brands Inc. (STZ) sporting a Zacks Rank #1 (Strong Buy). Other stocks in the consumer staples sector worth considering are Green Mountain Coffee Roasters Inc. (GMCR) and ConAgra Foods Inc. (CAG). Both the stocks carry a Zacks Rank #2 (Buy).

Read the Full Research Report on CAG
Read the Full Research Report on STZ
Read the Full Research Report on DEO
Read the Full Research Report on GMCR

Zacks Investment Research

View Comments (0)