Diageo has been enjoying a strong rally since September and on Thursday was once again the biggest contributor to the FTSE 100 in points terms. Investors have been warming to the recovery story as it enjoys greater sales from pubs, restaurants and hotels now that many Covid restrictions have been lifted.
Russ Mould, investment director at AJ Bell, said: “Helping to drive shares in Diageo was positive read-across from Remy Cointreau whose shares jumped 9.4% after reporting stronger than expected first half results including operating margins at a new all-time high.
“While there is a growing trend for more people not to drink alcohol, there is also a shift with others preferring more premium spirits which is playing to Diageo and Remy Cointreau’s strengths.
“Year to date Diageo’s share price is up by 33%, meaning it has achieved three times the returns from the FTSE 100 in 2021.
“The FTSE 100 itself was flat on Thursday as strength in consumer, industrial and healthcare stocks was offset by weakness in technology, energy, financials and real estate.”