DIAGEO UP TO BUY CHINESE SPIRITS COMPANY?
It is rumored that Diageo may buy Chinese spirits company Sichuan Swellfun Co., although the company is currently denying reports. Shares of Sichuan were suspended on Monday, Oct. 16 following a media report that Diageo was in advanced talks to buy the company, according to Bloomberg.
"The company is seeking information regarding the media reports from the controlling shareholder, the board and senior managers, and is yet to receive a reply from them,'' Sichuan Swellfun said in a statement to the Shanghai Stock Exchange today. Its shares have surged 153% this year, outpacing a 45% gain in the benchmark Shanghai Composite Index.
Diageo has already said it will commit more capital to developing regions including India and Asia, where the company increased liquor sales by 15%. If Diageo ends up purchasing Sichuan, it will mark the first time a Chinese spirits company has been acquired, according to the Economic Observer.
DIAGEO MAINTAINS FULL YEAR GUIDANCE. Diageo said today it maintains its forecast for full-year earnings after the company gained market share in North America and increased growth in Latin America. The company confirmed its August forecast of a 6% sales growth and a jump in operating profit up 7%.
"Trading in the first quarter supports that guidance and therefore we reiterate that fiscal '07 guidance," Chief Executive Paul Walsh said in a statement.
NEW MALALTERNATIVE TESTS IN DALLAS. Diageo is test marketing a new malalternative, or “progressive adult beverage,” at Dallas nightclubs and c-stores through December, reports Brandweek. Smirnoff Source is a lightly carbonated drink with 3.5% ABV and sold at a premium $2.49 per bottle. Packaged in a clear, glass bottle, its flavors include Pure Berry, Pure Citrus and Pure Orange flavors.
Diageo also is testing in Florida ready-to-drink beverages-Captain Morgan and Cola, Smirnoff and Lemon Lime, Seagram 7 and Lemon Lime and George Dickel and Cola-in 12-ounce cans retailing in c-stores for $1.99.
"The company is seeking information regarding the media reports from the controlling shareholder, the board and senior managers, and is yet to receive a reply from them,'' Sichuan Swellfun said in a statement to the Shanghai Stock Exchange today. Its shares have surged 153% this year, outpacing a 45% gain in the benchmark Shanghai Composite Index.
Diageo has already said it will commit more capital to developing regions including India and Asia, where the company increased liquor sales by 15%. If Diageo ends up purchasing Sichuan, it will mark the first time a Chinese spirits company has been acquired, according to the Economic Observer.
DIAGEO MAINTAINS FULL YEAR GUIDANCE. Diageo said today it maintains its forecast for full-year earnings after the company gained market share in North America and increased growth in Latin America. The company confirmed its August forecast of a 6% sales growth and a jump in operating profit up 7%.
"Trading in the first quarter supports that guidance and therefore we reiterate that fiscal '07 guidance," Chief Executive Paul Walsh said in a statement.
NEW MALALTERNATIVE TESTS IN DALLAS. Diageo is test marketing a new malalternative, or “progressive adult beverage,” at Dallas nightclubs and c-stores through December, reports Brandweek. Smirnoff Source is a lightly carbonated drink with 3.5% ABV and sold at a premium $2.49 per bottle. Packaged in a clear, glass bottle, its flavors include Pure Berry, Pure Citrus and Pure Orange flavors.
Diageo also is testing in Florida ready-to-drink beverages-Captain Morgan and Cola, Smirnoff and Lemon Lime, Seagram 7 and Lemon Lime and George Dickel and Cola-in 12-ounce cans retailing in c-stores for $1.99.
posted at 12:21 PM
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