Sector News

Diageo aims to boost its stake in Chinese firm Sichuan Shuijingfang

June 26, 2018
Food & Drink

Diageo has approached the board of directors of Sichuan Shuijingfang Company with a proposal for a partial tender offer to increase its aggregate equity stake in the Chinese firm from approximately 39.7% to up to 60%.

Shanghai-listed Sichuan in mainly engaged in the manufacture and sale of alcoholic products. It provides liquor products under the brand of Swellfun and its wine products include Swellfun Diancang, Swellfun Jingtai and Swellfun Zhenniang No. 8. It distributes its products within both domestic and overseas markets.

Diageo – which owns brands such as Smirnoff vodka, Gordon’s gin and Casamigos tequila – said that the announcement does not constitute the announcement of an offer and creates no obligation on the company to make an offer.

In its half-year financial results posted in January, Diageo saw its net sales rose by 1.7% to reach £6.53 billion and its operating profit increased by 6.1% to £2.19 billion.

China represents a small part of Diageo’s business, but the firm posted a net sales increase by 32% in Greater China in its half-year figures.

The company’s Chinese white spirits net sales grew 80%, driven by expanded distribution beyond its core 17 provinces.

Sichaun said it would not be de-listed if a deal goes through.

Source: FoodBev

comments closed

Related News

September 25, 2022

Coca-Cola names new president of global ventures

Food & Drink

The Coca-Cola Co. has promoted Evguenia (Jeny) Stoichkova to president of global ventures, effective Jan. 1, 2023. Ms. Stoichkova joined Coca-Cola Bulgaria in 2004 and was most recently the president of the company’s Eurasia & Middle East division, a role she has held since 2021.

September 25, 2022

Perfect Day allies with Onego Bio to speed-up launch of animal-free eggs

Food & Drink

US-based Perfect Day, is partnering with Onego Bio, which specializes in creating animal-free eggs, aiming to accelerate the timeline to bring the eggs to the market. The business, with the use of its technology, plans to commercialize animal-free ovalbumin, the most abundant egg white protein extracted through precision fermentation.

September 25, 2022

EU fails on food waste: Report reveals bloc discards more than it imports

Food & Drink

Food waste costs the EU €143 billion per year (US$141.7 billion), with a report by Feedback EU raising the alarm of how it’s vital to reduce waste from farm to fork 50% by 2030 and the only way this will be achieved is by enforcing a mandatory directive forcing the food industry to do better and retailers to pay a tax of food waste.