Back to top

Analyst Blog

Diageo Plc. (DEO - Analyst Report) has opened its first Johnnie Walker House in Seoul, Korea in Sep 2013. Johnnie Walker House is an ultimate luxury venue for the Scotch whiskey lovers where the visitors can acquaint themselves to the different types of Scotch whiskies offered by the company. The inauguration is part of Diageo’s strategy to promote Scotch whiskey in the Korean market.

This is DEO’s third Johnnie Walker House outside Scotland, the first being in Shanghai in 2011. Following its huge success, DEO opened a second property in Beijing in 2012.

The Johnnie Walker House in Seoul has been created by the creative agency LOVE and is inspired by the ‘whisky conversation' theme similar to the preceding ones in Shanghai and Beijing. Every room, display and interaction in the ‘House’ engages the customers in stimulating discussions, inspirational events, lectures and master classes.

The six-floor building has a distillery room, blending suite, VIP lounge and a rooftop bar where visitors can taste rare whiskies. DEO is also offering limited edition rare Scotch whiskies, custom designed dinners, and other exclusively-Korean, modern whisky offerings in the ‘House.’

Diageo is apparently trying to make up the decline in sales in the Korean market by shifting its focus to premium brands and attract its first-rate customers who can afford to visit the modern establishments.     

Such promotional efforts is expected to boost sales of Diageo’s Scotch whiskey segment, which suffered a setback in the Asian market in the recently concluded second half of fiscal 2013. Net sales in Korea fell 17% on an organic basis during the period.

Other Stocks to Consider

Currently, Diageo carries a Zacks Rank #2 (Buy). Other consumer staples stocks worth considering are Boston Beer Inc. (SAM - Analyst Report), Constellation Brand Inc. (STZ - Analyst Report) and Anheuser-Busch Inbev ((BUD - Snapshot Report). While Boston Beer carries a Zacks Rank #1 (Strong Buy), Constellation Brand and Anheuser-Busch carry a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.