Three Reasons Why Diageo Holds Long-Term Potential

Diageo Plc. recently reported flat sales and lower net income in its half-year earnings, amid a slowing spirits market in the U.S., "anti-extravagance" policies in China, and currency depreciation in Russia and Venezuela. Yet, the share price increased almost 10% in the last six months, in line with the Dow Jones 30 index. In spite of the headwinds the alcohol beverage giant is set to face in the short run, the business has solid growth potential.