Diageo to buy stake in Vietnamese distiller

DRINKS giant Diageo is acquiring a 23.6% stake in Hanoi Liquor (Halico) from Vina Capital Vietnam Opportunity Fund for ￡33 million.

Halico is Viet Nam's largest branded spirits company whose main brand is Hanoi vodka.

The UK drinks firm described itself as a "long-term equity investor" in Halico and said it would assist its new partner in innovation, branding, supply, distribution and corporate relations. "Partnerships are integral to the way we want to grow our business in this region," said Gilbert Ghostine, president of Diageo Asia Pacific.

Diageo Viet Nam will continue to handle the main Diageo portfolio in the country, including Johnnie Walker, Smirnoff and Baileys.