Diageo holds a special place in the hearts of many of us here at C.I. Associates. They are involved in the production and distribution of a wide variety of beers, wines and especially liquors. Their brands are as ubiquitous as Guinness and Johnny Walker and as obscure as Periquita. With the growth of the middle and upper/middle classes in many emerging markets around the world (read: China) we believe that Diageo will profit greatly from an explosive growth in the size of their customer base. Their brands appeal to people from many different cultures and economic classes and with diverse tastes. It is also commonly held that in economic downturns people usually do not reduce their consumption of alcohol. We see this as a recession-resistant company with great growth potential.