Shaker and martini glass

Tis the holiday party season! Discover the manufacturer of your favourite alcoholic beverage company – Diageo one of the holdings in the European Focus Fund!

Diageo is the leading global distiller of premium drinks with over 200 internationally renowned brand names, including: Johnnie Walker, Tanqueray, Smirnoff, Captain Morgan, Baileys, Guinness, and many more under its umbrella. The company’s aim is to be one of the best-performing, most trusted and respected consumer-products companies in the world. Although Diageo as we know it today was formed in 1997 following the merger of Guinness Brewery and Grand Metropolitan, some of its brand names date back to the 17th century.

Diageo holds many qualities which are attractive to the Fund’s investment strategy. First, the business is focused but has a global footprint with a wide customer-spread that spans from end-consumers to trade-buyers in the restaurant and bar industries. Secondly, through its many brand names Diageo has pricing-power. Thirdly, unlike food producers, the majority of Diageo’s products are non-perishables whose value tends to increase with age.

Diageo has been part of Fund’s European investment universe since before the inception of the Fund in August 2014 and it has been a holding of the portfolio since March 2016. Over-and-above the aforementioned attributes, Diageo has a well-defined ESG-strategy which should ensure a market-leading position for many years to come. The company has run an advanced diversity policy with many women holding key positions in the group’s senior management team. Equally important, Diageo’s social consciousness as a good corporate citizen is manifested in its ‘Society 2030: Spirit of Progress’ action plan. The aim of this program is to promote ‘positive drinking’ by changing the way the world drinks for the better. This means that Diageo is actively promoting moderation and is continuously addressing harmful use of alcohol by changing attitudes and tackling underage drinking, drink-driving, and binge drinking. Not only do we consider these objectives to be socially sound, but they also make commercial sense since they imply that consumers are advised to drink better – not more – and to trade up to higher quality and better-tasting drinks in a responsible fashion.

For more information about the European Focus Fund and its other holding, click here.

This is provided for information purposes only and does not constitute investment advice or any recommendation to buy, or sell or otherwise transact in any investments. This is not intended to be construed as investment research. Past performance is no guide to future performance and the value of investments and income from them can fall as well as rise.

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The document is provided for information purposes only and does not constitute investment advice or any recommendation to buy, or sell or otherwise transact in any investments. The document is not intended to be construed as investment research. The contents of this document are based upon sources of information which Heptagon Capital LLP believes to be reliable. However, except to the extent required by applicable law or regulations, no guarantee, warranty or representation (express or implied) is given as to the accuracy or completeness of this document or its contents and, Heptagon Capital LLP, its affiliate companies and its members, officers, employees, agents and advisors do not accept any liability or responsibility in respect of the information or any views expressed herein. Opinions expressed whether in general or in both on the performance of individual investments and in a wider economic context represent the views of the contributor at the time of preparation. Where this document provides forward-looking statements which are based on relevant reports, current opinions, expectations and projections, actual results could differ materially from those anticipated in such statements. All opinions and estimates included in the document are subject to change without notice and Heptagon Capital LLP is under no obligation to update or revise information contained in the document. Furthermore, Heptagon Capital LLP disclaims any liability for any loss, damage, costs or expenses (including direct, indirect, special and consequential) howsoever arising which any person may suffer or incur as a result of viewing or utilising any information included in this document. 

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