This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Russian Vodka Boycott: 4 Spirit Companies In The Clear

James Dennin, Kapitall: Owners of gay bars across America and Canada are fighting back against Russian President Vladimir Putin's "gay propaganda" reforms in perhaps the only way they can – pouring out their Stoli.

[Analyze These Ideas:  Compare analyst ratings for the companies mentioned.]

The boycott was encouraged by columnist and blogger Dan Savage, who called for an action of "solidarity" with Russia's LGBT's communities, which have been suffering under increasingly restrictive laws that ban advocating for gay causes, or even sharing pro-gay sentiments in public.

Many critics and scholars have pointed out that Putin's actions have a populist bent, as growing dissent in the cities has led him to rely more and more on conservative, rural voters to hold on to his increasingly trepidatious strangle-hold of Russian politics.

Savage's pronouncement has been simple: "DUMP RUSSIAN VODKA."

There are no Russian liquor companies which trade publicly in the US or otherwise. And as the vodka-maker has pointed out, Stoli is owned by a Luxemborg beverage company, the SPI Group. However the company's owner – Yuri Scheffler, and the company's distinct brand both benefit from Russian branding and have manufacturers there.

Now, we at the Wire are primarily whiskey drinkers – but were still curious as to whether this grass-roots movement would have any effect on distillers in general. With that in mind we searched for stocks in the beverages industry that produce spirits but don't have any operations in Russia, in case late-summer revelers start actively buying non-Russian labels. Even if the beverage industry fails to respond to the boycott, a broader movement could still catch on in time to affect the 2014 Winter Games in Sochi. 

And a note to readers: Smirnoff brand is owned by Diageo (DEO) – a British-based company – and is produced primarily in India, Ireland, the UK and the US.

The List

Click on the image below to see returns over time. One year returns sourced from Zacks Investment Research. 

 <p>Your browser does not support iframes.</p>

Will these protests affect the world's beverage market? Use the charts below to begin your own analysis.

1. Diageo PLC ( DEO): Engages in producing, distilling, brewing, bottling, packaging, distributing, developing, and marketing spirits, beer, and wine products. Market cap at $76.72B, most recent closing price at $122.70. Major brands include Smirnoff Vodka, Guiness, Captain Morgan.

 

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,751.39 +121.12 0.69%
S&P 500 2,108.57 +15.32 0.73%
NASDAQ 5,111.7330 +22.5270 0.44%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs