The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry
Diageo is reportedly considering a sale of its China assets as part of a review of its operations, according to Bloomberg News.
The report, published yesterday, states that the Guinness and Johnnie Walker maker is conducting an assessment of the China assets as part of efforts to streamline its portfolio.
According to Bloomberg, its unidentified sources revealed Diageo is currently working with Goldman Sachs and UBS to carry out the review of its operations, which includes a more than 63% stake in Shanghai-listed wine and spirits group Sichuan Swellfun.
The alcohol giant has faced headwinds in recent years due to changing consumer behaviours and market challenges, particularly relating to the ongoing tariff uncertainty. The company reported slowing demand in China in November, leading to a double-digit sales decline.
Diageo has been implementing a series of strategic measures to optimise its operations and improve performance, including several divestments over the past year.
Most recently, it announced the sale of its 65% stake in East African Breweries (EABL) to Japanese beer giant Asahi in a significant $2.3 billion deal.
The transaction is currently undergoing a regulatory review process, however the sale’s final completion has been temporarily halted by Kenya’s High Court after previous EABL distributor Bia Tosha filed a motion seeking to suspend the sale until pending litigation – based on a dispute with Diageo dating back to 2016 – is resolved.
FoodBev has approached Diageo for comment on the review of its China business.
