Reminds us a little bit of Lorillard. Focused mainly on one brand which had a few line extensions (Newport), lean, focused, and had great ROA/ROE.

Focused on American whiskey where they have 50%+ market share 😍

ROA is 17% 🤩 Vs. Diageo’s ~9%

Their inventory gets more valuable with age. This also serves as a barrier to entry, as startup whiskey makers have the worst cash-conversion cycle imaginable.

Seems to be laser-focused on three brands, in order, Jack Daniels, Woodford Reserve, and El Jimador. They’re selling off non-premium brands (SoCo and Canadian Mist to Sazerac).

Priced to near-perfection at a 38 PE. 10-year EPS growth only 1% higher than Diageo, which has a PE of roughly half that.

We like the strategy of hyper-focusing on one brand (like Monster). Tennessee Honey, Gentleman Jack, Jack Daniels Cola - all successful line extensions. Nothing is more American than Jack Daniels. It’s a timeless brand which should get better with age if properly managed. I kind of wish they would have kept Southern Comfort though.

Forgive the poor audio quality for one of us -- Future episodes are recorded on a better set up with monitoring so we know when we sound bad :).