Diageo,
the world's leader in the premium drinks industry, based in the
United Kingdom, continues to dominate the world market in
“celebrating life everyday, everywhere.” Established only in
1997, it has built an enviable business empire, and analysts say that
Diageo has sustainable competitive advantage over its peers.
Analysts
believe that Diageo's unmatched portfolio of spirits combined with
its vast distribution network, including thousands of dedicated sales
people in the US, would be very difficult and expensive for any
competitor to duplicate. The company is making investments to grow
its book of business in emerging markets such as India and China.
In the
opinion of analysts, these competitive advantages and growth
prospects justify an earnings valuation above the market average.
More than
that, however, bioenergy technology is helping drive long-term
growth. Renewable energy is playing an increasingly important role in
Diageo's efforts to curb emissions, specifically the £17m bioenergy
plant at the Roseisle Scotch whisky distillery in Speyside, Scotland,
which won the award for Renewable
Energy Project of the year at the 2013 BusinessGreen Leaders Awards
last month.
The
innovative plant combines a range of clean technologies, including
anaerobic digestion to convert the draff and pot ale by-products into
methane, which is fed into a biomass boiler, and clean water, which
can be used for the malting process. Waste heat from the distilling
process is also pumped to Diageo's Burghead maltings plant next door
for reuse.
Diageo is
now poised to open a giant £65m bioenergy plant at the Cameronbridge
distillery in Scotland later this year, which will reduce total
company CO2 emissions by more than five per cent by the end of 2014.
Meanwhile, another bioenergy plant has also been opened at Diageo's
St Croix rum distillery in the US Virgin Islands, and further
projects are in the pipeline.
Sources:
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