The Luxury Trap: How Premiumization Is Sinking Diageo's Spirits The latest quarterly investor letter from ByteTree Asset Management paints a sobering picture of the global spirits market, with Diageo PLC at its center.
Investors are grappling with the complexities of a post pandemic economy, and premiumization – the trend towards high end consumer spending – has emerged as a major concern for luxury goods companies like Diageo.
At first glance, it's puzzling that Diageo's struggles should be attributed to premiumization rather than reduced alcohol consumption.