Diageo (DEO) Relocates North America HQ To Lower Manhattan
Zacks Investment Research | Feb 12, 2020 10:14PM ET
In a bid to take its business to the next level, Diageo (LON:DGE) plc (NYSE:DEO) has relocated its North America headquarters to Lower Manhattan in the city of New York. Last year, the company revealed intentions of moving the headquarters of its largest market from Norwalk in Connecticut to New York.
Per management, this move signifies an important shift as the company is focused on eliminating boundaries, becoming bolder and more future-focused, and moving closer to a nucleus of diverse consumers. Also, this shift will help it to enhance flexibility and collaboration.
Moreover, the company’s relocation is likely to allow it to expand access to various talent pools and capabilities. This is expected to add 350 new job opportunities to New York City, in addition to the existing 150 Diageo jobs already on payroll. The company expects to gain from its positioning in the heart of one of the world's most exciting cities.
Diageo is keen on exploring opportunities to expand geographically through acquisitions to further strengthen its exposure in the fast-growing categories. The company, like most other multinationals, is turning attention to the emerging markets. It is the leading international spirits company in the emerging markets of Africa, Latin America and Asia. Moreover, Diageo caters to the local tastes of the regions. Its products like Johnnie Walker Blue Label bottle, which was designed through a series of exclusive private tasting in China, India, Thailand, Vietnam, Brazil and Mexico along with local cultural relevance, testify this strategy.
The company’s expansion and innovation efforts along with robust organic growth trend instill confidence in reaching its medium-term targets. Diageo reiterated its growth targets for the medium term between fiscal 2020 and 2022, which was initially announced in May 2019. The company continues to expect organic net sales growth in mid-single digits for the period.
We note that shares of this Zacks Rank #3 (Hold) company have increased 3.5% in the past year compared with the Zacks Investment Research
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