Diageo strengthens ties with Shuijingfang baijiu

By Emily Kearns, Lucy Britner

Published: 23 July, 2013

Diageo is to acquire the remaining 47% of baijiu brand Shuijingfang's major shareholder for £223 million.

Diageo is to acquire the remaining 47% of baijiu brand Shuijingfang's major shareholder for £223 million.

The global drinks giant has received approval from the Chinese authorities to acquire the remaining 47% stake in Sichuan Chengdu Shuijingfang Group Company (SJF Holdco) owned by its Chinese partners. As a result, SJF Holdco will be converted from a joint venture into a wholly foreign-owned enterprise - owned by Diageo. On completion, Diageo's indirect interest in the Shanghai-listed company, Sichuan Shuijingfang Co (Shuijingfang), will rise from 21.05% to 39.71%.

Gilbert Ghostine, president of Diageo Asia Pacific, said: "I am delighted to have gained approval from the Chinese authorities to acquire the rest of our Chinese partners' interest in SJF Holdco. This is a milestone in the journey we began with our partners six years ago. As the controlling shareholder in Shuijingfang, Diageo will continue to work with the senior Chinese management to build Shuijingfang into the leading international baijiu brand. I have every confidence in the long-term future of the baijiu category in China."

Last year, Diageo lauched Shuijingfang in the UK market - the first European market to receive the product. Andrew Cowan, country director at Diageo GB, said at the time: "This launch represents a milestone in the journey of Shuijingfang to becoming an international brand and we look forward to working with SeeWoo to build the brand with British consumers."

SeeWoo is a specialist Oriental food wholesaler headquartered in the UK.

Printer friendly version