Diageo (NYSE:DEO) is the largest alcoholic beverage producer and marketer in the world. Diageo sells a collection of premium alcohol brands in the spirits, wine and beer categories. Some well known brands in the Diageo portfolio include Smirnoff, Guinness, Johnnie Walker, Baileys, JeB, José Cuervo, Captain Morgan and Tanqueray, and Beaulieu Vineyard and Sterling Vineyards wines.^[1]

Diageo does the majority of its business in the developed Western world. North America and Europe have always been Diageo's largest market, but they are relatively stagnant and saturated markets. Western Europeans and Americans are consuming less alcohol than they have traditionally, evidenced by a 27% decrease in consumption in the United States from 1980 to 2000.^[2]

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