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Let the profits be-Gin: how to invest in the G&T boom

Cherry Reynard
Written By:
Cherry Reynard
Posted:
Updated:
04/06/2019

Famous investor Peter Lynch once urged investors to ‘invest in what they know’. With that in mind, could an investment in gin be the answer?

New research from the Share Centre points out that gin lovers could buy up to 34 G&Ts by investing in the companies that produce them.

Gin is a major UK export, surpassing beef and beer. For 2018 the combined sales of UK gin, both in the UK and overseas, surpassed the £2.5bn mark.

The main option to invest in gin is via listed drinks companies Diageo and Pernod Ricard. Diageo owns gin brand Tanqueray, while Pernod Ricard owns Beefeater.

World Gin Day is coming up on the 8th June and promises to be even bigger than last year, with a five-day festival in London.

Since World Gin Day last year both Diageo and Pernod Ricard have seen notable improvements in share price performance, returning 11.09% and 19.25% respectively. Tonic groups have also done well, with Britvic returning 18%. Fevertree hasn’t fared as well, after a tough run since the start of May.

The Share Centre showed that an investor splitting £1,000 equally between Diageo, Pernod Ricard and Britvic on 8 June last year would have made £172 profit. This gives you a return of 17.21% and £231 more than they would have made in the FTSE All Share at the same time. With this extra cash they could have bought nine bottles of Gordon’s or seven bottles of Tanqueray or Beefeater Gin. Alternative, the profits would have bought 34 G&Ts.  

Thomas Rosser, investment research analyst at the Share Centre, comments: “Investing doesn’t have to be boring. In fact it’s a great way of setting goals whether that be for small targets such as enjoying gin with friends or life milestone goals such as saving for a house or retirement. Realising the value of letting your money do the work for you is crucial and allows powers such as compounding to take control.”


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