Diageo targets Turkish market with £1.3bn purchase

By Ben Bouckley

- Last updated on GMT

Related tags: Diageo

Diageo targets Turkish market with £1.3bn purchase
Diageo has agreed a deal to buy Turkish spirits company Mey Içki for around £1.3bn from investment capital firm TPG Capital, in a cash and debt-funded deal.

As Turkey’s leading spirits producer and distributor, Mey Içki recorded net sales of TL766m (£300m) in the year ending December 31 2010, and is a native market leader in raki (its Yeni Raki brand is pictured) while Diageo said its strength in vodka was also appealing.

Global drinks player Diageo said the investment would allow it to tap an increasingly affluent Turkish middle class in an “attractive emerging market”​, using Mey Içki’s distribution and customer relationships in the country.

Diageo insists that Mey Içki is a high growth, high margin business, and Paul Walsh, ceo, said: “This investment represents the continuation of our strategy to increase Diageo’s presence in those emerging markets, such as China and Vietnam, which have a rapidly growing middle class.”

Existing Diageo brands across spirits, beer and wine include Johnnie Walker, Crown Royal, Smirnoff, Baileys, Captain Morgan, Jose Cuervo and Guinness.

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