:. Food Industry News


Diageo May End JV with Radico Khaitan

Source: Reuters
04/11/2008

Mumbai, Nov 4 - Diageo may exit its equal joint venture with Indian liquor maker Radico Khaitan Ltd seeking alternative growth strategies in the country, the Economic Times newspaper reported on Tuesday. Spokespersons from the companies were not immediately available for comment.

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Diageo, the world's largest whiskey maker, is expected to keep the JV's 'Masterstroke' whiskey brand, the report quoted sources as saying.

The JV is behind schedule in its business plans and 'Masterstroke' faces competition from rival brands, Royal Stag and McDowell's No. 1, it said.

Diageo has already taken charge of the marketing and distribution functions from Radico two months ago as a prelude to the formal exit, the report said.

Diageo-Radico Pvt Ltd was set up to tap the Indian made foreign liquor segment in 2006.



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