UK/CHINA: Chinese spirits deal costs Diageo US$67m
Diageo has revealed the cost of its acquisition of a minority stake in Chinese spirits producer Sichuan Chengdu Quanxing Group Co.
Last month, the UK-based drinks giant snapped up a 43% share in Quanxing for what was then said to be an undisclosed sum.
However, Diageo has now said it will pay CNY517.2m (US$66.5m) for the stake, which gives it an interest in a leading maker of premium traditional Chinese liquor, or baijiu.
Quanxing holds 39.48% of the equity in Sichuan ShuiJingFang Joint Stock Co. Diageo said it expects to seal the transaction "shortly".
Diageo plans to help distribute Quanxing's spirits stable throughout China, a portfolio that includes the 'baijiu' brand Shui Jing Fang.
Diageo is also aiming to help promote the Shui Jing Fang brand outside China with markets in Asia the first target.
If prime target consumers for international spirits in China have as much difficulty telling whisky from Cognac as a recent report suggests, marketers may have to up their game to reap the rewards the...
Smirnoff and Johnnie Walker may make Diageo more money, but there is no more iconic brand in its portfolio than Guinness. Nevertheless, speculation continues that Diageo may sell off its main beer bra...
Terms like heritage, authenticity and personality can be seen as the building-blocks of brand image, but to establish an instant connection with consumers these attributes have to be captured visually...
Established as the dominant force in its domestic wines and spirits market and as an exporter to other African countries, South African group Distell is now aiming to raise its profile in global marke...
The chairman of Diageo has announced his retirement....
Diageo Great Britain is launching a new bottle for Morgan's Spiced Rum in the UK....
Diageo has appointed a new chief financial officer for its North American unit....
The Diageo-owned brewer Guinness has been the victim of an adulteration scam in Nigeria....
- Review of the Year 2014 - Part V: Wine
- just Five Years Ago - Belvedere Group's Bumpy Ride
- Review of the Year 2014 - Part IV: Spirits
- Cuba-US Normalisation: Bacardi, Pernod Winners?
- Sustainability in Wine - Part IV
- Campari to bag EUR19m with "non-core" assets sale
- Pernod wins consent for Glenlivet upgrade
- Tequila set for export boost after record 2014
- Pernod agrees Caribe Cooler sale to Grupo Bepensa
- Crimson Wine Group appoints new CEO