Diageo plc is the world’s number one player in the premium spirits category with a 27% volume share in 2011. The company’s strategy consists of promoting and expanding its strategic brands, such as Smirnoff, Johnnie Walker, Guiness and others. Diageo’s 7 biggest brands account for more than 50% of sales and most of the company’s marketing efforts, of which 2/3 are aimed at emerging economies. Because of the company’s famous brands, it can repel competitors and maintain a steady price/volume mix. Although Eastern Europe and Russia have been strong growth drivers, Europe which corresponds to 1/4 of net sales has been a drag on earnings due to the economic situation. While only 12% of sales are earned in Asia, the company is investing in the region through growth accretive acquisitions as well as promoting its brands with strong marketing efforts and lower margins. Because of the premium brands that the company produces, the company is not as defensive as others. But as the global economy improves, the company’s premium offering should be beneficial as customers trade up.