Replies to post #10798 on The Rising Influence of Rising Affluence

[DewDiligence]

(DEO/BF-B/MGPI)—Beware of the Bourbon Bubble, says Barron’s:

https://www.barrons.com/articles/u-s-whiskey-stocks-like-brown-forman-have-soared-beware-the-bourbon-bubble-51557514898

[DewDiligence]

DEO has a bet-the-company bet on India:

https://www.wsj.com/articles/diageos-india-bet-woo-local-governments-win-the-market-11573398001

Indian society has long viewed alcohol consumption as a sign of moral laxity. Yet, consumption is soaring. The average Indian drank 38% more alcohol in 2017 than in 2010, according to a study in The Lancet…

…The growing popularity of liquor, along with protests from women who say alcohol leads to domestic violence, is prompting some Indian policy makers to act. The state of Andhra Pradesh, which is home to 50 million people, took over thousands of liquor stores last month as a first step toward prohibition. In August, the top court in the hill state of Uttarakhand ordered the government to ban alcohol.

…Navigating India’s volatile regulations is an increasing area of focus for the world’s biggest whiskey maker, especially because it is counting on the country’s burgeoning middle class to offset slowing drinking in the West. Between 2013 and 2014, Diageo paid $3.2 billion for a controlling stake in United Spirits Ltd., India’s largest spirits company. It now generates roughly 60% of its [worldwide] volume growth from the country.

…To protect sales, Diageo is helping a number of Indian states develop tax policy [!]. To demonstrate that it is a responsible actor, it is rolling out road-safety programs… Still, some executives question whether Diageo can successfully apply its global mantra—that alcohol in moderation can be part of a balanced lifestyle—to India.