Merrill Lynch is recommending Diageo as a long-term buy for investors. In a new report on the company, the brokers suggest the company is ready to deliver strong earnings growth. The ready-to-drink category, which includes its leading brands and fashionable drinks, has experienced 25 per cent growth in volume since 1995.

These drinks account for 4 per cent of the spirits market and less than 1 percent of the global beer market. Merrill Lynch believes the potential for further market share is substantial.