Diageo's chances of gaining control of Chinese spirits producer Shui Jing Fang have been significantly enhanced following news that the UK Government will “raise” the prospective deal with authorities during a high-level visit to China this week.

If the UK Government has decided to make the deal one of its measurements for success in this week's trade relations mission, then surely Diageo can only benefit? It is thought that the first stage of Diageo's strategy – to become the indirect controlling shareholder in Shui Jing Fang – could be announced this week to coincide with the UK visit.

Analysts say that a deal could triple Diageo's Chinese business overnight, thereby hugely enhancing the firm's exposure to emerging markets. Shui Jing Fang is a leading producer of premium Baiju spirit in China.

Chinese approval for the deal would also set an interesting precedent for foreign ownership in China's food and drinks sector. That said, nothing can be taken for granted after the country's Ministry of Commerce put the stoppers on Coca-Cola Co's deal for Huiyuan Juice Group last year.

Brewers dominated the news last week, with results for Anheuser-Busch InBev and Molson Coors, as well as MillerCoors. You can find all the results news here.

In regulatory news, the US Food & Drug Administration told just-drinks that it may ban alcoholic drinks with caffeine, while the UK Government is seeking to snuff out sales of cheap cider. On a global level, scientists at the World Health Organisation met to discuss bisphenol A.

Until next time...

Olly Wehring
Managing Editor
Web: http://www.just-drinks.com
Email: editor@just-drinks.com
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