GLOBAL: Pernod Ricard's growth potential brighter than Diageo's - analyst
Pernod is benefitting from the growth of premium Cognac in China
In a client note today (7 January), Bernstein Research analyst Trevor Stirling said that Diageo has the “upper hand” in Scotch whisky, particularly in LatAm, but that Pernod benefits from very strong profitable growth from premium Cognac in China. Stirling added that Pernod has “lower exposure to the PIIGS (Portugal, Ireland, Italy, Greece and Spain) in Europe”.
“Hence, Pernod Ricard offers slightly superior long-term top-line growth, whilst Diageo offers more operating leverage in the short-medium,” Stirling said.
“Overall, we have a slight preference for Pernod Ricard given current relative valuation and the fact we believe Pernod Ricard's growth model is perhaps slightly more top-line oriented.”
Concluding, Stirling said that, overall, Bernstein has a “positive long-term stance” on the European beverages sector, including brewers.
The drinks sector is particularly fertile ground for mergers and acquisition activity, with a number of big businesses accustomed to making acquisitions to spur growth, new players popping up all over...
In a recently-published global briefing 'Diageo in Spirits', Euromonitor International's senior alcoholic drinks analyst Jeremy Cunnington takes a look at what are the challenges facing Diageo in spi...
- Focus - Pernod's YTD Performance by Region
- just On Call - Pernod shifts Scotch focus in China
- Focus - Heineken's Q1 Performance by Region
- Focus - Coca-Cola's Q1 Performance by Region
- Comment - Will We Understand the Language of Rum?
- CFO of Diageo's United Spirits stands down
- Pernod Ricard sees YTD recover as sales increase
- BrewDog launches GBP25m crowd-funding attempt
- Africa "subdued" but Heineken sees Q1 rises
- Elements 8 revamps rum packaging
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- ALDI 2015: Radically transforming Anglo Saxon grocery markets
- Bacardi Limited - Strategy and SWOT Report