Keep pulling the thread on Debra Crew.
Diageo's growth strategy is centered on the consumer trend of "drinking better, not more," leading to a focus on premiumization and capturing occasions from beer and wine.
Approximately 62% of Diageo's product portfolio is classified as premium-plus, compared to an industry average of 35%.
Diageo predicts that by 2028, super-premium plus priced products will account for almost a quarter of the entire spirits category.
By simplifying its innovation process for lower-risk products from five stages to two, Diageo was able to reduce the product launch timeline by almost a year.
The Norwegian Sohren Wealth Fund owns 2.2% of Diageo, an investment equivalent to $1.3 billion.
Alcohol spending consistently accounts for less than 2% of consumer discretionary wallets.
The spirits industry is currently facing challenges from cyclical economic pressures and prolonged inflation, which is compressing consumer discretionary spending and impacting volumes.
Diageo observes a consumer behavior trend called "zebra striping," where individuals alternate between alcoholic and non-alcoholic versions of the same brand, such as Guinness and Guinness Zero Zero, within a single social occasion.
Gen Z consumers are adopting spirits at a faster rate than previous generations, driven by the popularity of ready-to-drink (RTD) products and the trend of consuming spirits with food.
Per capita alcohol volume consumption peaked in 2012 and has been on a slight but steady decline since.
Diageo has not observed the use of anti-obesity drugs by consumers as a distinct factor breaking from the long-term trend of mindful alcohol consumption.
Diageo has not seen the legalization of marijuana in several U.S. states cause a distinct break in alcohol consumption trends, attributing this to different usage occasions.