For those looking to load up in Britain’s beverages sector it is hard to look past FTSE 100 colossus Diageo.

Thanks to market-leading labels like Johnnie Walker whisky, Captain Morgan rum and Guinness stout, Diageo can look forward to reliable revenues growth even in times of broader economic pressure. And the vast sums the firm is ploughing into developing these brands and bolstering marketing activity keeps bolstering their appeal with drinkers across the globe.

The City expects earnings at Diageo to rise 4% in the year to June 2018, and I fully expect the bottom-line to keep chugging higher further out as sales steadily improve in emerging and established markets alike. As such I think the stock is totally worthy of a forward P/E ratio of 21.5 times.

 

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