Episode 40: The Business of Booze: Can “Zero” Be Diageo's Comeback Story? 

Alcohol has long been seen as a reliable, cash-generative industry. But in this episode of Stocks Neat, Steve Johnson and Gareth Brown explore why that assumption is being challenged and whether the sector can adapt.

Drawing on Gareth’s recent meetings in London, including discussions with global drinks giant Diageo (LON:DGE), the conversation digs into falling consumption and generational shifts in drinking habits. Added to this is the growing impact of substitutes like cannabis. The hosts unpack why beer has been hit harder than spirits, how premiumisation once masked declining volumes, and why the economics of alcohol brands are changing fast.

A key focus of the episode is the surprising rise of alcohol-free products, particularly Guinness Zero. Gareth shares observations from UK pubs where Guinness appears to be everywhere and explains why zero-alcohol beer could help brands defend both relevance and profitability in a more health-conscious world. The episode even features a blind taste test to see just how close Guinness Zero comes to the original.

“You are now entering soft drink economics with alcohol prices.” - Gareth Brown

Topics covered include:

• Global alcohol consumption trends and post-COVID demand
• Why younger generations are drinking less, or not at all
• Cannabis as a substitute and its impact on beer
• Beer vs wine economics and capital returns
• The rise of alcohol-free beer and Guinness Zero
• What all this means for investors
  
  

High Performance In and Out of the Pool

From Olympic gold to the ASX 200, Generation Development CEO Grant Hackett joins Steve Johnson for a special episode of Stocks Neat.

They discuss Grant’s journey from elite sport to business leadership, the importance of purpose beyond success, and how lessons from swimming translate into building a $3 billion company.

As Grant shares: “You’re retired to something, not from something.”

The conversation also dives into Generation Development’s core businesses, from investment bonds and annuities to Lonsec and the rise of managed accounts, and how the company is navigating growth, regulation, and leadership under pressure.

Make sure to stick around to the end of the podcast, for a candid talk between Steve and Grant.

In the latest Stocks Neat episode, Steve Johnson, Gareth Brown and Isabella Foley dive into Japan’s corporate transformation — from shareholder returns and buybacks to digitisation and the demographic shifts reshaping opportunities.

“It’s been like a snowball that’s been pushing across a flat surface for a long period of time. It’s finally started to gather some momentum.” – Steve Johnson

With Japan now a significant part of the international portfolio, the team shares where they’re finding value and why some of the most interesting ideas are hiding in plain sight. 

As the financial year wraps, Episode 37 of Stocks Neat takes a deep dive into the standout performance of Financial Year 25. Chief Investment Officer Steve Johnson is joined by Portfolio Managers, Gareth Brown and Alex Shevelev to discuss what drove results across Forager’s international and Australian funds — from Japanese software gems to ASX tech turnarounds and undervalued relics making quiet comebacks.

The conversation covers how passive flows are reshaping the investing landscape, the importance of preparedness in a momentum-driven market, and why the team is finding fertile ground in small caps despite years of pessimism.

Whether you're curious about current positioning or where the next wave of opportunities may lie, this episode offers a candid look at the thinking behind the returns.

Alternative assets are going mainstream — but are investors ready?

In this special episode of Stocks Neat, Steve Johnson is joined by Stephen Darke, CEO of Navigator Global Investments, to unpack the ever-expanding world of alternative assets: from hedge funds and seeding strategies to manager selection and structural risks.

With decades of experience allocating capital globally, Stephen shares what it takes to identify a repeatable edge, when to walk away, and why institutional lessons are now flowing into wealth channels.

“You can't just get excess returns across all cycles without giving something up, and what are you giving up… Liquidity.”

If you’ve ever wondered how alternatives can complement a core portfolio, or why liquidity isn’t always your friend, this episode delivers plenty of food for thought.

Markets are swinging wildly, and policy tweets aren’t helping. In this quarter’s podcast, Chief Investment Officer, Steve Johnson, and Forager International Shares Fund Portfolio Manager, Harvey Migotti, dive into the renewed tariff chaos sparked by Donald Trump’s latest announcements. They explore what it could mean for US exceptionalism, inflation expectations, and global investor sentiment.

From the bond market's sharp reaction, to the larger than expected tariffs and broader questions around corporate confidence and earnings revisions, Steve and Harvey dissect the key themes shaping portfolios right now.

In Episode 34 of Stocks Neat, Chief Investment Officer, Steve Johnson, and Portfolio Manager, Gareth Brown, take a deep dive into the challenges facing active fund management giants Magellan and Platinum, and the lessons for investors seeking long-term outperformance. They unpack what’s gone wrong, the rise of ETFs, and why small-cap opportunities remain a crucial edge for Forager.

The discussion explores industry trends, the impact of fund size on performance, and how Forager stays nimble in an increasingly passive market. With insights on market dynamics and practical tips for identifying standout active managers, this episode is a must-listen for thoughtful investors.

“Outperformance in active management is hard to find. It’s about being different and being right, which becomes increasingly difficult as funds grow larger and markets shift.”

As we approach Forager's 15th birthday, in Episode 33 of Stocks Neat, CIO Steve Johnson and Portfolio Manager Gareth Brown dive into the 50bps rate cut in the US and its impact on small-cap stocks. They unpack the latest market moves, spotlight companies like #Motorpoint and #Ferguson poised to benefit from lower rates, and share their strategies amidst ongoing volatility. 

The discussion explores resilient businesses, the correlation between rate cuts and small-cap outperformance, and how Forager has evolved over the past 15 years. Tune in as they reveal current opportunities and what the future may hold for investors navigating this changing landscape.

"Rate cuts, especially unexpected rate cuts, tend to benefit the more marginal businesses. Think heavily-geared businesses, cyclical industries, lower-margin businesses, companies that don't necessarily lead their markets of secondary and tertiary competitors."

As we close out the 2024 financial year, in Episode 32 of Stocks Neat, CIO Steve Johnson, and Portfolio Manager Alex Shevelev, do a deep dive into the state of small-cap stocks and the latest market movements. 

They discuss recent market volatility, spotlight resilient companies with strong recurring revenue, and share their stock-picking strategies. The episode also covers risk management approaches and provides insights on future market trends.

Tune in as they discuss current opportunities, from small-cap recovery to potential high-performing sectors. 

"The small-cap market has been a challenging space, but within it, there are high-quality businesses with strong recurring revenue and free cash flows, presenting significant opportunities for investors." 

In episode 31 of Stocks Neat, Portfolio Manager Gareth Brown and CIO Steve Johnson discuss Nvidia’s unprecedented rise, the recent Guzman y Gomez IPO, current investor sentiment and macroeconomic concerns.

They examine the future competitive landscape of the AI chip space and Guzman’s plans for global expansion. Moving onto the whiskey tasting, they then test a Glenturret whiskey from the "supposed" oldest distillery in Scotland.

The episode also features a discussion of geopolitical risks and the implications of government policy. Rather than looking at any policy changes from a market wide perspective, they argue that investors should focus on how that change may affect specific sectors. Listen to the full episode to find out more.

“If you can put aside the fear of missing out, there’s plenty to do in a world where investors are apathetic to 95% of stocks”.