Diageo’s Turnaround Efforts Should Revive Growth, but the Road Is Long
Diageo was formed in 1997 following the merger of Grand Metropolitan and Guinness. Mergers and acquisitions are part of the firm's fabric, and subsequent transactions have established Diageo as a global industry leader. The key motivation for Diageo's acquisition strategy in previous years was to broaden the product portfolio, which is critical in the on-trade channel (bars, restaurants, pubs). Volume in the spirits industry is more cyclical than beer, and with transient trends. Its broad presence across categories with both global strategic and local niche brands mitigates the risk to volume from shifting consumer preferences.
United States