Will Recent Acquisitions Bring More Power to Diageo?
One of Diageo’s key growth strategies has been to make acquisitions in high-growth markets and product categories. In February, Diageo acquired the remaining 50% stake in Don Julio tequila from Jose Cuervo in exchange for Bushmills Irish Whiskey.
One of Diageo’s notable innovations Crown Royal Regal Apple whisky, launched in November 2014. This flavored whisky was its biggest driver of increased shipments for the US spirits and wine business in 3Q15.
North America is the largest and most profitable region for Diageo, accounting for 34% of net sales and 45% of operating profit in fiscal 2014.
Some analysts believe that 3G Capital might be interested in Diageo’s beer business. 3G Capital has a meaningful stake in beer market leader Anheuser-Busch InBev.
Keurig Green Mountain is working on new products to boost its sales. This includes the upcoming launch of the Keurig Kold beverage system.
Organic coffee is the largest category of US organic imports in terms of dollar value. After declining for many years, organic coffee imports increased by 31.3% to $332.5 billion in 2014.
In fiscal 2014, Keurig Green Mountain purchased 43.4 million pounds of coffee from Fair Trade Certified sources. This represents ~19% of the company’s total coffee purchases that year.
US consumption data are showing signs of improvement. The recent retail sales figures show that consumption patterns are improving.
The US economy is in decent shape. Low interest rates have been a boon for most families. Home affordability is close to a multi-decade high.
Growth drivers for Nike Nike’s (NKE) expecting fiscal 2016, to be “its best year yet”, according to CEO Mark Parker. The company’s guidance projects revenue growth in the mid-single digits…
The Home Depot believes in educating less wired up vendors about the inherent opportunities in e-commerce. This will lead to higher sales, a win-win for both parties.
It’s interesting to note that pro customers are more prone to spend in a store than online. However, their tendency to order on the Web is growing.
On its 1Q16 earnings call, Restoration Hardware unveiled RH Modern, a new luxury retail concept store. It will be six to eight times the size of its other stores.
Restoration Hardware, the luxury furniture retailer, is one of the most successful adapters of omnichannel retailing in the industry. It uses its stores as brand showrooms.
Home furnishing retailer Pier 1 Imports reported that its e-commerce sales almost doubled year-over-year in 1Q16. Online sales were $73 million in 1Q16 compared to $38 million in 1Q15.
A number of big box retail companies like Walmart and Target are going after the urban market through smaller stores. Sales per square foot may potentially be higher.
Earlier this year, privately-held big box furnishing chain IKEA announced that it may open small-format stores in Canada. These will be a place for customers to pick up online orders.
Supply chain smarts At the Goldman Sachs dotCommerce Conference 2015 on June 18, Kevin Hofmann, senior vice president and president of the online business for The Home Depot (HD), spoke…
The ticket size for Home Depot’s online sales is significantly higher than the average in-store spend of $55–$65 per transaction.
Home Depot’s omnichannel initiatives are playing a vital role in its financial results. The company’s online sales in fiscal 2015 were $3.8 billion, or 4.5% of revenue.
But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.