Asian Importance To Diageo Will Only Grow Going Forward

UK spirits major Diageo has confirmed that it plans to disband its five-year-old joint venture in India with local spirits producer Radico Khaitan, which will be finalised in the coming months. The termination of the partnership means that Diageo will have to do it alone in India. Given the significance of Asian growth to Diageo, we believe the company will focus its Indian strategy on strengthening its brand appeal and building its distribution reach. The other high-growth Asian spirits markets such as China and Vietnam are also coming into greater focus for Diageo, and the fantastic long-term opportunities on offer in these markets should provide considerable momentum to its headline growth.

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