DIAGEO GETS A PIECE OF THE PIE

Diageo has purchased a 43% stake in local Chinese distiller Sichuan Quanxing Group, a leader in the super-premium tier of the Chinese white spirits, or “baijiu,” category with its Shui Jing Fang brand. Financial terms of the deal weren’t released, but under the agreement the two parties will establish a joint venture through which Diageo will become the exclusive global distributor of Shui Jing Fang.

In the past couple of years it seems everyone wants a piece of the Chinese alcohol beverage market. Companies like SABMiller, Anheuser-Busch and Diageo are betting that the burgeoning Chinese middle-class will eventually increase their demand for alcohol, and make them some money.