Earlier this month, Diageo, the world's largest distiller sold off 19 of its lower-end spirits for $550 million to focus on its premium lines.
The company has managed to reverse revenue declines over the past five years and according to Diageo, the company is on track to have a 5 percent sales increase in 2018.
With an expansive portfolio of spirit brands including Smirnoff, Baileys, Guinness, Johnnie Walker, Cîroc, and Tanqueray– what does the future hold for the spirits mogul?
There could be some challenges considering the "Brexit negotiations, currency volatility, trade disruption brought about by the actions of the Trump administration, and other countries' retaliatory measures," according to "Just Drinks."
But the company has consistently made smart moves to remain slim and trim like it's recent move to sell off the underperforming spirit brands. In 2015, the company sold most of its wine assets.
Diageo is also one of the many beverage companies looking to get into the cannabis market in Canada.
According to a recent report by "Bloomberg," Diageo was allegedly in talks with at least three cannabis producers based in Canada.
The spirits producer also has been focusing on nurturing new brands by funding Distill Ventures, which is an incubator for spirit start-ups.
"In early-2018, Diageo bought Berlin vermouth maker Belsazar - its first acquisition from Distill Ventures. The move is a sign that the company will look to use Distill Ventures to facilitate its entry into key growth areas such as, in this case, the aperitif occasion in Europe," writes "Just Drinks."
Not to mention, Diageo will be investing significantly in new product development. The company is building a new tech hub in Scotland to research and create new innovations within its spirits portfolio.
Read more about the future of Diageo at "Just Drinks."
We recently covered how Diageo was selling off 19 of its brands to focus more on the trending craft spirits market. Watch the recent episode of The Barron Report where host Paul Barron analyzes the company's latest move.