Jim Cramer on Diageo: "I See A Lot of Their Lines of Business Not Doing Well"

Diageo plc (NYSE:DEO) is one of the stocks Jim Cramer shed light on. Inquiring about the stock, a caller noted that the company might have a “new CEO turnaround story.” Here’s what Mad Money’s host had to say in response:

“Okay, let me give you my, I think that the dividend at 5.6 can keep it here. They have to come up with something very special because I see a lot of their lines of business not doing well. Okay, I’m going to throw in Constellation and Brown-Forman, downgraded again, too. I don’t own stocks just for dividend, but I think it can stop right there because of the dividend.”

Diageo plc (NYSE:DEO) produces and sells a wide range of alcoholic beverages, including beer, whisky, vodka, gin, and rum. A caller inquired about the stock during the July 10 episode, and the Mad Money host replied:

“Oh, okay, you came to the right guy because I’ve been in the bar business, the restaurant business, and the liquor business. I gotta tell you, they all stink. The problem is this: If you’re looking at the alcohol business, the GLP-1s, the new generation of people actually care about their health and wellness, and getting fat. Well, alcohol’s got all three. And don’t forget gummies. Gummies.. very heavy competition. I’d rather own gummies than… Diageo. There, that’s a statement.”

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Disclosure: None. This article is originally published at Insider Monkey.