Weekly "Focus" and Scotch Whiskey

Bradley Goldhar - Jan 26, 2024

If you ever get the chance to visit Scotland, please do. It’s a beautiful country – Edinburgh is a gorgeous city; the countryside is stunning, castles galore and the place to go if you happen to enjoy Scotch whiskey. Just don’t count on ever finding the Loch Ness Monster. Yesterday was Robbie Burns Day in Scotland, honouring their national poet who died in 1796. On one of our trips there, we had the opportunity to tour the Oban distillery, owned by Diageo (DEO), the world’s largest drinks company. It’s amazing the price discrepancy across Canada for a bottle of 14 year-old Oban single malt whiskey. For example, a bottle in Ontario is $169.95 but if you’re in Alberta, you can find it for as little as $119.99. Perhaps Ontario should privatize the LCBO? In addition to Oban, Diageo owns other Scotch brands such as Lagavulin and Talisker. It’s been a tough go for shareholders in the company – 2023 saw the value of the shares decline by 18% and so far no gain in 2024 (i).

 

This week’s "Focus" from our economics team is attached.

 

Have a great weekend,

 

Brad

Senior Portfolio Manager and Senior Investment Advisor

 

Source: (i) FactSet