Core Viewpoint - Diageo is exploring options for its business in China, including its majority stake in Sichuan Swellfun Co, and has engaged Goldman Sachs and UBS for asset review [1] Group 1: Business Operations in China - Diageo's principal activities in Greater China include distilling, warehousing, and marketing of Chinese whisky and white spirits, with ownership of one distillery and a 63% stake in Sichuan Swellfun Co [2] - In the last financial year ending June 30, Diageo reported an 8.4% organic increase in sales volumes in Greater China, although net sales fell by 9% organically [2] Group 2: Market Challenges - The company cited "challenging economic conditions" in its annual report, leading to a portfolio shift towards white spirits and lower-aged malts, which improved volumes but resulted in a negative price/mix [3] - Diageo's white spirits business faced reduced consumption occasions in the baijiu market after a year of strong double-digit growth [3] Group 3: Financial Adjustments and Disposals - In November, Diageo lowered its sales and profit forecasts due to pressures in the Chinese white spirits market and a soft consumer environment in the US [4] - Recent disposals include the sale of its stake in Guinness Ghana Breweries and Cacique rum, with plans to save around $500 million in costs over the next three years [5] Group 4: Leadership Changes - Sir Dave Lewis, a former Tesco and Unilever executive, became Diageo's CEO on January 1, succeeding Debra Crew [6]

The U.K. drinks group said it would sell its 65% shareholding in East African Breweries. - Reuters Diageo is to sell its majority stakes in two Kenyan drinks businesses to Japanese brewer Asahi for proceeds of around $2.3 billion. The U.K. drinks group, which makes Guinness beer, Smirnoff vodka and Gordon’s gin, said it would sell its 65% shareholding in East African Breweries, or EABL, and its roughly 54% stake in distiller UDVK to Asahi. The remaining shares of UDVK are held by EABL. Most Read from T ...