The Drinks Business recently reported that 31Dover, one of the UK’s largest online liquor distributors, saw a 400 per cent spike in sales after the lockdown measures were introduced last month. Indeed, I recall walking into my local Co-Op on the day after Boris Johnson closed all the pubs and noticed that the wine and beer shelves had been virtually stripped bare.
People like a drink, particularly when they’re under stress. And there can be few companies better placed to meet that need than Diageo (DGE). But it will have to do without its long-serving chief marketing officer, Syl Saller, who is to retire after 20 years with the group, even though you wouldn’t imagine it would be difficult to market booze under the current circumstances. To help her on her way, she has hived off 5,000 American depository shares (ADRs) garnering $642,577 (£523,022) in the process.
The drinks giant, which numbers Smirnoff, Johnny Walker and Guinness among its global brands, is donating 2m litres of alcohol in the fight against Covid-19, not for consumption, but for use in hand sanitisers. The move is commendable, although at risk of seeming cynical, it’s also good PR at a time when the business is under pressure through the pub/bars closure and logistical challenges.
Based on previous bear markets, we might reasonably assume another significant down leg is in the offing – it would be unrealistic to think the market has bottomed out. So, with activity in the licensed trade constrained, the group is likely to take a significant hit to earnings and cash flow, although it will be illuminating to learn how off-licences fare during the lockdown. Another thing to watch is if the group is thinking of reassigning any of the £3.38bn in near-term debt obligations.
| Buys | ||||||
| Company | Director/PDMR | Date | No. of shares | Price (p) | Aggregate value (£) | Comments |
| 3i | Simon Borrows (ceo) | 27 Mar 20 | 100,000 | 771.34 | 771,000 | |
| 3i | Julia Wilson | 27 Mar 20 | 31,900 | 769.97 | 245,620 | |
| 3i | Julia Wilson | 27 Mar 20 | 295 | 765.31 | 2,258 | |
| The Restaurant Group | Kirk Davis (cfo) | 30 Mar 20 | 276,797 | 35.93 | 99,453 | |
| Volex | John Molloy | 30/31 Mar 20 | 126,921 | 109 | 138,344 | |
| 3i | Peter Wirtz | 31 Mar 20 | 45,000 | 780 | 351,000 | |
| Drax | Will Gardiner (ceo) | 31 Mar 20 | 97,500 | 153.07 | 149,243 | |
| Hostelworld | Carl Shepherd | 31 Mar 20 | 20,000 | 56.1 | 11,220 | Converted from $. Remaining Hostelworld trades conducted in £ |
| Spire Healthcare | Simon Rowlands | 1-3 April 20 | 258,000 | 77.19 | 199,150 | |
| Hostelworld | Michael Cawley (ch) | 2 Apr 20 | 45,000 | 54.5 | 24,525 | |
| Drax | Andrew Koss | 2 Apr 20 | 32,247 | 154.49 | 49,818 | Aggregate price |
| Volex | Daren Morris | 2/3 Apr 20 | 20,000 | 111 | 22,200 | |
| Norcros | Susan Kelsall | 3 Apr 20 | 200,000 | 121 | 242,000 | Wife of Nick Kelsall, ceo |
| Norcros | Shaun Smith | 3 Apr 20 | 15,000 | 121 | 18,150 | |
| Hostelworld | Eimear Moloney | 3 Apr 20 | 40,000 | 54.5 | 21,800 | |
| Meggitt | Guy Berruyer | 6 Apr 20 | 25,000 | 251.32 | 62,830 |
| Sells | ||||||
| Company | Director/PDMR | Date | No. of shares | Price (p) | Aggregate value (£) | Comments |
| Diageo | Sylvia Saller | 31 Mar 20 | 5,000 | 10,462 | 523,022 | American Depositary Shares |
