J A Finance Ltd

(543860)

The stock of leading UK company Diageo grew rapidly during 2020 with a year-on-year return of 20%, reaching a market capitalisation of around £107 billion. Diageo’s performance is largely attributed to its wide portfolio, strong focus on innovation, as well as a decentralized approach to management. The spirits group's emphasis on luxury drinks such as single malt whisky and premium gin helped to cushion the impact of pandemic-related lockdowns. Although grocery sales grew, Diageo experienced a decline in sales in on-trade channels, reaching an all-year low of 23% in Q2. In response to this, the company has rolled out a series of initiatives to reignite these channels. These have included investing £60 million in promotional and digital marketing to reach more customers, as well as launching new products such as “undrinkable” vermouths.

2020 proved to be an extraordinary year for UK-based Diageo, with the company's stock growing 20% year-on-year and reaching a market capitalisation of £107 billion. Their success can be attributed to a range of factors including their diverse product portfolio, commitment to innovation, and decentralised management. During the pandemic-induced lockdowns, its luxury drinks such as single malt whisky and premium gin provided some cushioning from the blow to sales in the on-trade channel. This dropper to an all-year low of 23% in Q2. In light of this, Diageo has implemented a range of initiatives to restore sales in these once popular channels. Encompassing £60 million in promotional and digital marketing as well as newly released “undrinkable” vermouths, these initiatives demonstrate Diageo's commitment to garnering renewed customer engagement.

Share Price: ₹34.60 per share as on 21 Nov, 2024 04:01 PM
Market Capitalisation: ₹35.10Cr as of today
Chairperson Name: Dilip Kumar Goyal