Leading U.K.-based brewer Diageo plc DEO is making changes at the executive level and recently announced the appointment of Jakob Ripshtein as Chief Financial Officer (‘CFO’) of its North American business.
Ripshtein is currently serving as the president of Diageo’s Canada unit and will hence take up additional responsibilities.. He will replace Greg Kryder who plans to leave in January to pursue other career interests after serving the company for 14 years. Ripshtein joined Diageo in 2008 as vice-president of finance in Canada. He will continue to report to Deirdre Mahlan, who was appointed six months back to lead the struggling U.S. unit.
Ripshtein in his current role has overseen the successful transformation to a broker model, delivering strong business results and great employee engagement during a period of significant change.
We note that the world’s largest distiller seeks to restore growth in the U.S. Diageo’s operating income in North America, the company’s largest profit region. The company is also working with the Securities and Exchange Commission after reports that the Smirnoff owner has been manipulating its sales figures to inflate profit. Per a Wall Street Journal report published on Jul 23, Diageo is suspected of shipping excess inventory to distributors to boost its results.
Diageo is making efforts to boost its growth after several quarters of sales fiasco. Slowdown in the U.S. spirits market, an “anti-extravagance” campaign in China, unfavorable currency movements in key markets and lower revenues from acquisitions led to a decline in sales volume for Diageo. In order to focus on its spirits business, Diageo also plans to sell off the non-core assets.
Currently, Diageo has a Zacks Rank #3 (Hold). Investors interested in the beverage sector may consider Constellation Brands Inc. STZ, carrying a Zacks Rank #2 (Buy). A couple of consumer staples stocks worth a look include The WhiteWave Foods Company WWAV and Dr Pepper Snapple Inc. DPS, both carrying a Zacks Rank #2.
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