Diageo plc (DEO, Financial) (3.2% of net assets as of September 30, 2021) (DEO - $193.00- NYSE) is a leading global producer of alcoholic beverages, with brands including Smirnoff, Johnny Walker, Ketel One, Captain Morgan, Crown Royal, J&B, Baileys, Tanqueray, and Guinness. The company has a balanced geographic presence in both mature and emerging markets, and benefits from both growing spirits consumption globally, as well consumers around the world trading up to more premium products. While the COVID-19 pandemic negatively impacted out-of-home spirits volumes, Diageo’s strong brand portfolio has benefited from increased at-home consumption, growing e-commerce distribution, and a blossoming consumer interest in crafting high-end cocktails – trends which are expected to persist even as bars and restaurants broadly reopen. Longer term, Diageo should continue to benefit from price and volume growth, leveraging its leadership position in its high barrier-to-entry industry.
From Mario Gabelli (Trades, Portfolio)'s Gabelli Value 25 Fund third-quarter 2021 commentary.
