DEO Enters a JV With Main Street Advisors: Things You Should Note

Diageo plc DEO has been making smart moves to enrich experience and aid overall growth. In the latest announcement, the company unveiled that it has formed a strategic joint venture (JV) with Main Street Advisors, which is a key investment and advisory organization.More on DEO’s Latest AnnouncementUnder the collaboration, the company has exchanged majority ownership of Cîroc Ultra-Premium Vodka’s brand rights in North America for a majority ownership stake in Lobos 1707 to obtain the maximum value of the former brand rights in the continent and the latter’s brand rights all over the world.The aforesaid venture blends DEO’s scale, operational excellence, consumer insights and history of developing a few world’s leading spirits brands with the Main Street Advisors’ solid expertise in culture via the media, music and professional sports worlds. This alliance brings Diageo’s route-to-market, supply chain and marketing excellence together with Main Street Advisors’ success in investing, incubating and scaling up culturally disruptive consumer businesses.The JV fortifies the strength of two premium brands with robust trademarks and artisan roots. Cîroc Vodka is distilled from fine French grapes, having solid winemaking expertise.??? Per the JV, Cîroc vodka and Lobos 1707 tequila will each retain their unique identities and consumer appeal. Nick Tran is appointed as president and chief marketing officer (“CMO”) for the aforesaid strategic agreement.Henceforth, Cîroc in North America will not be consolidated in the company’s North America financial results and will be classified as income from JV and associates. However, the accounting treatment for Cîroc in all the other markets is unchanged. The aforesaid syncs well with DEO’s Growth Ambition Strategy to aid sustainable development alongside grabbing the opportunity in North America, focusing on agility and reinforcing the business moving forward.What Else to Know?Diageo is refining its $2 billion productivity program to drive efficiency across the business to bring sustainable growth. A key focus is balancing cost savings with strategic reinvestment, particularly in marketing and brand activation. It remains committed to maximizing value while building the right capabilities for success.Diageo has been experiencing significant gains from improved price/mix, which have been aiding growth despite soft volume. In the first half of fiscal 2025, organic net sales rose 1% year over year, marking a return to organic sales growth and a sequential improvement from the second half of fiscal 2024. Hence, management expects to continue driving productivity and pricing to offset the cost inflation. Image Source: Zacks Investment ResearchThis Zacks Rank #3 (Hold) company’s shares have lost 17.7% in the past three months against the industry’s 0.6% rise. Diageo has been witnessing soft volumes across key regions, which hurt net sales in the first half of fiscal 2025. Increased overhead costs, including staff expenses and one-off strategic investments, have also been weighing on its profits.Stocks to ConsiderUnited Natural Foods UNFI, which is a distributor of natural, organic and specialty food in the United States, currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.UNFI delivered a trailing four-quarter earnings surprise of 408.7%, on average. The Zacks Consensus Estimate for UNFI’s current financial-year sales and earnings per share (EPS) indicates growth of 1.9% and 485.7%, respectively, from the year-ago numbers.Utz Brands UTZ manufactures salty snacks under popular brands and has a Zacks Rank of 2. UTZ delivered a trailing four-quarter average earnings surprise of 8.8%.The Zacks Consensus Estimate for UTZ’s current financial-year sales and EPS implies growth of 1.2% and 10.4%, respectively, from the year-ago numbers.Nomad Foods NOMD, which manufactures frozen foods, currently carries a Zacks Rank of 2. NOMD delivered a trailing four-quarter earnings surprise of 5%, on average.The Zacks Consensus Estimate for Nomad Foods’ current financial-year EPS indicates growth of 3.1% from the year-ago number.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Diageo plc (DEO): Free Stock Analysis Report United Natural Foods, Inc. (UNFI): Free Stock Analysis Report Nomad Foods Limited (NOMD): Free Stock Analysis Report Utz Brands, Inc. (UTZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks