Diageo ups spirits stakes in Vietnam with new Halico deal

Diageo has announced the successful closure of its public offer to acquire an addition 10.62% state in Hanoi Liquor Joint Stock Company (Halico), as it aims to work with the company in the 'rapidly growing' Vietnamese branded spirits sector.

The Public Offer opened on May 11 and closed on June 14 of this year, and Diageo expects to complete the transaction on June 24, after which its total equity stake in Halico will rise to 45.52%. 

Diageo entered a strategic partnership with Halico, which it described today as Vietnam's leading domestic branded spirits producer (with number one vodka brand, Vodka Hanoi) in January 2011.

As Halico's strategic partner, Diageo said it would continue to assist Halico in enhancing its capabilities across a range of functions, including innovation, branding, supply and distribution. 

Ho Van Hai, director of Halico, said: “Diageo continues to demonstrate its commitment under the Strategic Partnership Agreement, assisting Halico to strengthen the Vodka Hanoi brand. We look forward to long term co-operation between Diageo and Halico under the strategic partnership agreement and the positive effects it will continue to have on our business.”

Gilbert Ghostine, president of Diageo Asia Pacific, said: “We are pleased to further participate in Halico‟s growth potential and success by increasing our equity investment, which is an expression of our long term commitment both to Halico and to Vietnam.”

Diageo said that it would continue to develop its own international premium spirits portfolio in Vietnam via its wholly owned subsidiary in the country, where it includes the brands Johnnie Walker, Smirnoff and Baileys.