Back to top

Analyst Blog

Leading brewer Diageo plc (DEO - Analyst Report) is geared to enrich its luxury alcohol portfolio and has taken over the super premium tequila brand, Peligroso, from California-based Peligroso Spirits Company, LLC.

Peligroso is the latest addition to the premium brands, following the DonJulio and DeLeón acquisitions. The acquisition is a strategic fit for Diageo, as it will give access to the growing super-premium tequila segment.

Peligroso, which originated in the highlands of Jalisco, Mexico, is a popular brand in the action sports and surfing culture of Southern California.

Peligroso comes in four variants — Cinnamon, Silver, Reposado and Anejo. The brand, with a retail price range of $30 to $55 per 750ml bottle, is distributed in 12 U.S. states.

The deal comes three weeks after the U.K.-based brewer formed a 50/50 joint venture with Combs Wine & Spirits to acquire the brand DeLeón on Jan 8, 2014. The joint venture was formed in 2007 to develop and grow the Cîroc ultra-premium vodka brand.

Diageo, which currently carries a Zacks Rank #3 (Hold), is a leader in the whiskey category. The company also commands a leading position both in the beer and vodka markets with a strong portfolio of globally recognized flagship brands, including Smirnoff, Johnnie Walker, Captain Morgan, Baileys and Guinness. Diageo betters its products through continuous innovations.

Another better-ranked stock in the same sector is Constellation Brands Inc. (STZ - Analyst Report) sporting a Zacks Rank #1 (Strong Buy). Other stocks in the consumer staples sector worth considering are Green Mountain Coffee Roasters Inc. (GMCR - Analyst Report) and ConAgra Foods Inc. (CAG - Analyst Report). Both the stocks carry a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
GREEN PLAIN… GPRE 36.46 +3.79%
MATRIX SERV… MTRX 30.90 +2.93%
ENZO BIOCHE… ENZ 5.20 +2.77%
GENTIVA HEA… GTIV 15.82 +2.73%
VIPSHOP HOL… VIPS 191.34 +2.23%