Latest news with #alcoholicbeverages
Associated Press
7 days ago
- Business
- Associated Press
Macau-Based Epsium Enterprise Limited Celebrates Nasdaq Listing with Closing Bell Ceremony
EPSIUM ENTERPRISE LIMITED (Nasdaq: EPSM) ('EPSIUM' or the 'Company'), a Macau-based importer and wholesaler primarily of high-end alcoholic beverages, today announced that it celebrated its recent Nasdaq listing by ringing the Nasdaq Closing Bell on Thursday, May 29, 2025. The ceremony commemorates EPSIUM's successful transition to a publicly listed company, following the completion of its initial public offering on March 26, 2025. EPSIUM's ordinary shares began trading on the Nasdaq Capital Market under the ticker symbol 'EPSM.' The IPO raised gross proceeds of US$5.0 million before deducting underwriting discounts and related expenses. Held at the iconic Nasdaq MarketSite in Times Square, New York City, the Nasdaq Closing Bell Ceremony is a longstanding tradition that recognizes corporate milestones and achievements. EPSIUM's leadership team, including CEO Mr. Son I Tam, was joined by employees, partners, and representatives from the professional services community to mark the occasion. Mr. Son I Tam, CEO of EPSIUM, commented: 'This is a proud milestone for our company — and a meaningful moment for a business born in Macau to step onto the global stage. This achievement belongs to every teammate, every investor, and everyone who believed in us. The world today is full of uncertainty — but also full of opportunities. I've learned that success isn't just about speed, but about direction and staying true to our values. I will always put our investors first and lead with integrity and responsibility.' EPSIUM plans to allocate the net proceeds from the IPO to several key initiatives: approximately 60% toward mergers and acquisitions or investments in complementary businesses, 10% toward sales and brand building, 20% for general corporate purposes, and the remaining 10% as discretionary reserve under the direction of the board of directors. Founded and headquartered in Macau, EPSIUM has developed a strong presence in the high-end liquor market, serving premium hospitality and private clients. The Company has also benefited from the business-friendly policies of Macau, which continue to support diversified economic development and cross-border business growth. 'The support of Macau's stable regulatory environment has played a crucial role in EPSIUM's growth journey,' said Mr. Son I Tam in interview ahead of the ceremony. 'As a gateway between mainland China and international markets, the Greater Bay Area provides EPSIUM with strategic advantages for regional expansion and long-term value creation. Our Nasdaq listing is a new beginning—we will continue to build on our foundation and tell the story of Chinese liquor to a global audience.' The ceremony was livestreamed on the Nasdaq website at About EPSIUM ENTERPRISE LIMITED Through its Macau operating entity, Companhia de Comercio Luz Limitada ('Luz'), a limited liability company organized under Macau laws in 2010, EPSIUM is engaged in importing and wholesaling primarily alcoholic beverages in Macau. Through Luz, the Company imports and sells a broad range of premium beverages, primarily alcoholic beverages and, in 2022, a small quantity of tea and fruit juice. The alcoholic beverages the Company sells include Chinese liquor, French cognac, Scottish whiskey, fine wine, Champagne, and other miscellaneous beverage alcohol. Sales of Chinese liquor is by far the Company's most significant operations, and the Company is a top wholesaler of high-end Chinese liquor in Macau. For more information, please visit the Company's website: Forward-Looking Statements Certain statements in this press release are forward-looking statements, including, but not limited to, the Company's proposed Offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs, including the expectation that the Offering will be successfully completed. Investors can find many (but not all) of these statements by the use of words such as 'approximates,' 'believes,' 'hopes,' 'expects,' 'anticipates,' 'estimates,' 'projects,' 'intends,' 'plans,' 'will,' 'would,' 'should,' 'could,' 'may' or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the 'Risk Factors' section of the Registration Statement filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at Media Contact Company Name: EPSIUM ENTERPRISE LIMITED Contact Person: Investor Relations Department Email: Send Email City: New York Country: United States Website: Source: LianPR
Yahoo
23-05-2025
- Business
- Yahoo
Alcoholic Beverages Top Trends Analysis Report 2025: Effectively Marketing Low/No Alcohol, Capitalizing on eCommerce, Marketing Premium Products Effectively, Coaxing Consumers Out
Understand the marketing narratives that will resonate with target demographics. Gain insights into market trends, consumer trends, and innovation examples that develop a picture of how changes in the alcoholic beverages sector are developing. Dublin, May 23, 2025 (GLOBE NEWSWIRE) -- The "Industry Insights: Top Trends in Alcoholic Beverages 2025" report has been added to report looks at the key trends that will define the alcoholic beverages sector in 2025: effectively marketing low/no alcohol, capitalizing on ecommerce, marketing premium products effectively, coaxing consumers out, affordable cost of living crisis and growing wealth inequality mean premiumization is a profitable trend for specific alcoholic beverage categories (including wines and spirits). Specific marketing narratives (such as emphasizing the mental health benefits of going out and destigmatizing the consumption of no/low alcohol) should be deployed when encouraging Gen Z to buy more Companies should tailor marketing to remove stigmas around drinking no/low alcoholic beverages. Premium brands should target high income consumers and emphasize a product's links to specific regions/cultures to reinforce a sense of authenticity and quality. Companies should market the mental health benefits of socializing outside the home to Gen Z consumers to boost on-premise sales. Companies should prioritize sustainability initiatives that also deliver on cost savings (such as lighter packaging or new enzymes that improve the energy efficiency of brewing). Key Topics Covered: Top Trends in Alcoholic Beverages 2025 Effectively marketing low/no alcohol Capitalizing on ecommerce Marketing premium products effectively Coaxing consumers out Affordable sustainability Takeaways Appendix Companies Featured Heineken Diageo Pernod Ricard Bouchaine Vineyards Josh Cellars Woodforde's Brewery International Beverage Eastside Distilling Beeline Financial Just Wines Beer Cartel Brewquets Tesla 721 Vodka DRINKS Constellation Brands Topikos Crown Royal Cono Sur Carlsberg Greene King Taureaux Tavern Castle Rock Tavern Pulpac Pulpex The Paper Bottle Company Cockburn's IFF For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-05-2025
- Business
- Yahoo
Diageo: Has the Stock Bottomed Out?
Diageo is currently trading at a 10-year low of $107.6, having lost nearly half its value since 2022. Investor confidence has weakened due to multiple headwinds. First, the company has experienced a sustained decline in sales across Latin America and the Caribbean, driven by excess channel inventory and a challenging consumer environment. Second, tariffs on alcohol imports into the largest market, accounting for around 40% of its revenuepose a serious threat to top line growth and profitability. Management estimates these tariffs could slash operating profits by $200 million, with 85% of the impact tied to tequila. Third, weak consumer sentiment limits pricing flexibility, particularly in the premium and ultra-premium segments where Diageo primarily operates. Finally, the company's high financial leveragereflected in a net debt-to-EBITDA ratio of 3.1x and total debt of $20 billionraises red flags. Despite declining profitability, Diageo continues to prioritize dividends and share buybacks over debt reduction, prompting concerns about its capital allocation strategy. Warning! GuruFocus has detected 4 Warning Sign with DEO. Diageo is one of the world's leading players in the alcoholic beverage industry, with a portfolio of over 200 brands spanning spirits and beer. Its product range includes Scotch whisky, gin, vodka, rum, tequila, ready-to-drink beverages, and beer, sold under globally recognized names such as Johnnie Walker, Crown Royal, Smirnoff, Ciroc, Ketel One, Captain Morgan, Baileys, Don Julio, Casamigos, Tanqueray, and Guinness. These brands are distributed in nearly 180 countries, showcasing the company's vast global reach. Diageo generates roughly 40% of its revenue from North America, followed by 24% from Europe, 20% from the Asia-Pacific region, and 16% from the Rest of the World. Scotch, beer, tequila, vodka, and Canadian whisky make up a significant portion of its revenue. Notably, Johnnie Walker accounts for over one-third of global Scotch sales and contributes nearly 25% to Diageo's total net sales. In the tequila segment, Don Julio and Casamigos lead the category and are the fastest-growing brands in Diageo's spirits portfolio. Diageo's Investor Presentation Diageo reports on a semiannual basis, with its fiscal year ending in June. In 2024, net revenue declined largely due to macroeconomic headwinds. Seasonality also plays a role, as the company's fiscal first half aligns with the holiday-heavy calendar second halftypically a period of stronger alcohol consumption. In 1H FY2025, net sales came in at $10.9 billion, down 0.6% YoY, primarily due to adverse foreign exchange movements. On an organic basis, net sales rose by 1.0%, driven by a 1.2 percentage point increase from pricing, while volumes declined by 0.2%. This suggests that topline growth is being driven by price hikes, not volume gainsindicating weak consumer demand elasticity. On a regional basis, performance was mixed: North America saw a modest return to organic net sales growth, marking sequential improvement from prior periods. Europe delivered a relatively resilient performance, led by Guinness, despite ongoing macroeconomic pressures. Asia Pacific underperformed due to weakness in Greater China and difficult comparisons with prior-year inventory replenishment in Shui Jing Fang. Latin America & the Caribbean is returning to growth as destocking nears completion and consumer sentiment stabilizes in key markets like Brazil and Mexico. Africa continued to post strong organic growth, although macroeconomic volatility remains a margins remain under pressure, with a 132 bps decline. Organic operating profit fell 1.2% in 1H FY2025, affected by higher staff costs, reinstated incentives (classified as one-offs), and continued strategic investmentsespecially in digital capabilities and U.S. route-to-market initiatives. EBIT and net profit margins declined accordingly. EPS dropped 11.7% YoY, while pre-exceptional EPS declined ~10% to $0.977. This was driven by weaker margins, foreign exchange headwinds, and a softer contribution from Moet Hennessy, where Diageo holds a non-controlling interest. While net revenue has grown marginally, its not keeping pace with inflation. In 2024, inflation in the U.S. and Europetwo of Diageo's largest marketshovered around 3% and 2.5%, respectively. This means Diageo is effectively shrinking in real terms. Although management highlights foreign exchange as a key factor, the more fundamental issue appears to be pricing power. Organic revenue growth is lagging inflation, and volumes are flat or declining, pointing to difficulty in passing cost increases to consumers. A key emerging risk is the impact of tariffs, particularly on products subject to geographic origin rules. Approximately 45% of Diageo's U.S. net sales come from items that must be produced in Mexico or Canadamost notably tequila and Canadian whisky. If enacted, these tariffs would affect input costs rather than retail prices, further compressing margins. While management claims they can mitigate the impact, this remains a notable downside risk given the current margin squeeze. Beyond short-term headwinds, structural issues in the spirits industry are becoming harder to ignore. Changing consumption patternsespecially among Gen Zshow a clear shift toward moderation, preference for ready-to-drink (RTD) formats, and growing interest in cannabis or GLP-1-related wellness products. According to a survey by Attest, 21.5% of Gen Z abstain from alcohol, and 39% drink only occasionally. These trends stem from both health concerns and affordability. While Diageo views these as cyclical, I see them as more structural. RTDs often act as direct substitutes, and while cannabis hasn't yet significantly impacted spirits demand, it competes for consumer wallet share. In the most recent earnings call, management withdrew its medium-term guidance, citing prevailing challenges. This signals that near-term financial performance may remain under pressure across the next few reporting periods. Diageo has strategically expanded its presence in the non-alcoholic beverage sector, aligning with evolving consumer preferences for moderation and wellness. Under CEO Debra Crew's leadership, the company has identified the no- and low-alcohol category as a significant growth opportunity. This is evident in its acquisition of Ritual Zero Proof in September 2024, a leading U.S. non-alcoholic spirits brand offering alternatives to whiskey, tequila, gin, rum, and aperitifs. This move complements Diageo's earlier investment in Seedlip, acquired in 2019, further solidifying its leadership in the non-alcoholic spirits market. These brands, along with alcohol-free versions of Gordon's, Tanqueray, and Captain Morgan, have contributed to a 56% increase in Diageo's non-alcoholic portfolio. The company has also invested in expanding production capabilities to meet growing demand. In July 2024, Diageo announced a 25 million investment to boost production capacity for Guinness 0.0 at its St. James's Gate facility in Dublin, aiming to increase output by 300%. Guinness 0.0 has gained significant traction, accounting for nearly 3% of Guinness's global volume . Additionally, Diageo's Indian subsidiary, United Spirits, acquired a 15% stake in V9 Beverages, a New Delhi-based non-alcoholic drinks company producing Sober Gin, Sober Whiskey, and Sober Rum, marking its entry into India's emerging non-alcoholic spirits market. Diageo's commitment to the non-alcoholic segment is part of its broader "Spirit of Progress" ESG strategy, focusing on promoting positive drinking behaviors and offering consumers a range of choices to moderate their alcohol intake. Several prominent gurus have recently trimmed their holdings in Diageo, reflecting a cautious stance amid evolving market conditions. As of March 31, 2025, value investor Mario Gabelli (Trades, Portfolio) reduced his stake in the company by 4.75%. Other well-known asset managers followed suitFirst Eagle Investment (Trades, Portfolio) sold down 7.44% of its position, while Ken Fisher (Trades, Portfolio) significantly cut his exposure by 93.94%. Dodge & Cox and Tweedy Browne (Trades, Portfolio) also made modest reductions of 2.32% and 1.61%, respectively. These portfolio adjustments may signal a reassessment of Diageo's near-term prospects and broader portfolio rebalancing strategies. Diageo's P/E ratio has dropped from 40x in 2021 to 16.6x today due to sustained headwinds. The stock trades at a 28% discount to its five-year average forward P/E of 23.02x. Despite this decline, Diageo still trades at a premium to consumer staple peers such as Shepherd Neame Limited and The Artisanal Spirits Company, which are valued at 13.5x and 9.3x forward earnings, respectively. I believe further downside is possible, as Diageo faces a complex operating environment marked by FX volatility, inflation, tariff threats, and evolving consumer preferences. Investors should remain cautious, as Diageo's declining sales in key regions like Latin America and Asia, coupled with persistent margin pressures, could delay any meaningful recovery. Additionally, its elevated debt levels and limited pricing flexibility may continue to constrain earnings growth in the near term. While its global brand strength and some regional resilience offer stability, key metricslike real revenue growth, shrinking EPS, and stagnant volumessuggest deeper issues than a typical cyclical slowdown. The company's ability to restore pricing power and adapt to structural shifts in demand will be crucial in the coming quarters. Until clearer signs of recovery emerge, it's prudent to keep Diageo on the watchlist and closely monitor how these dynamics unfold. This article first appeared on GuruFocus. Sign in to access your portfolio
