WATCH: Stock picks — Diageo and Royal Unibrew

Ricus Reeders from PSG Wealth Sandton chose Diageo as his stock pick of the day and Jean Pierre Verster from Fairtree Capital chose Royal Unibrew.

Reeders said: “Diageo is a spirit and liquor company and they sell what the economists call ‘suspicious consumption’. They sell things like Johnny Walker and I think that’s where the market is moving to.”

Verster said: “[Royal Unibrew] is a company that is a beer brewer but it also distributes non-alcoholic beverages so it’s got a few niche brands in the Scandinavian countries and the Baltic countries and because the big players like Heineken Colesberg and Anheuser-Busch have been pushing price. That creates the space for these niche or craft brewers to also raise prices but also gain volume because it’s different, it’s funky, it’s got a great brand and … it’s sometimes healthier.”