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Highlights
- The UK-based alcoholic beverage industry has been attracting a lot of new investment amid anticipation of growth and high demand from consumers.
- Many alcoholic beverage companies in the UK are revamping their operations to zero carbon emission by 2030.
The UK-based alcoholic beverage industry has been attracting a lot of new investment amid anticipation of industry growth and high demand from consumers. Moreover, the freeze in spirit duty during the budget announcement in October 2021 has led to a rise in the number of distilleries in the UK, which rose to 820 in 2021.
Improving investment scenario is resulting in merger & acquisition deals. Scotch whisky maker Eden Mill St Andrews recently received investment from Inverleith LLP, which bought a majority stake in the company. The new major investment will help the company expand its business towards premium products. Also, the company plans to build a new carbon-neutral distillery.
Many alcoholic beverage companies in the UK are also revamping their operations to zero carbon emission by 2030.
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Amid this background, let us explore 3 FTSE listed alcoholic beverage stocks and their investment prospects:
Diageo Plc (LON: DGE)
FTSE 100 listed company is one of the biggest alcoholic beverage companies in the world. It operates its business through different brands in the UK and other countries. The company reported solid growth in organic sales across different regions driven by high demand and continuous recovery in on-trade volume. Rapid recovery in the economy across different regions will benefit the company’s business and deliver long-term sustainable growth for shareholders.
Diageo Plc’s last close was at GBX 3,672 on 24 January 2022, with a market cap of £85,300 million.
The Artisanal Spirits Company Plc (LON:ART)
The AIM-listed company owns and manages The Scotch Malt Whisky Society (SMWS), which sells premium single cask Scotch whisky online. The company successfully raised gross proceeds of £26 million by listing its shares on the AIM index in June 2021. For the financial year ended 31 December 2021, it reported a 15% growth in global membership, resulting in full-year revenue of £18 million, which is ahead of market expectations.
The Artisanal Spirits Company Plc’s last close was at GBX 95 on 24 January 2022, with a market cap of £66.13 million.
Gusbourne Plc (LON:GUS)
The company produces and distributes wines of different types in the UK. It owns 231 acres of land to grow its raw materials for making wines. The company recently raised gross proceeds of £2 million through an open offer. The net proceeds from the open offer will be used to further expand the business operations like increasing visitor capacity at its cellar door operations and investing in future digital promotion.
Gusbourne Plc’s last close was at GBX 71 on 24 January 2022, with a market cap of £43.12 million.
