Ricus Reeders from PSG Wealth Sandton chose Diageo as his stock pick of the day and Jean Pierre Verster from Fairtree Capital chose Royal Unibrew. Reeders said: “Diageo is a spirit and liquor company and they sell what the economists call ‘suspicious consumption’. They sell things like Johnny Walker and I think that’s where the market is moving to.” Verster said: “[Royal Unibrew] is a company that is a beer brewer but it also distributes non-alcoholic beverages so it’s got a few niche brands in the Scandinavian countries and the Baltic countries and because the big players like Heineken Colesberg and Anheuser-Busch have been pushing price. That creates the space for these niche or craft brewers to also raise prices but also gain volume because it’s different, it’s funky, it’s got a great brand and … it’s sometimes healthier.”
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