Binboa Vodka was added to the portfolio of Diageo Plc (DEO) in April 2011, after it acquired Mey Icki Sanayi ve Ticaret, a Turkish distillery. Diageo now plans to expand the brand across the U.S.
London-based Diageo acquired the Turkish distillery and their entire portfolio of products from the U.S. based private equity firms TPG Capital and Acterar. However, the financial aspect of the deal is expected to be completed in the second half of the fiscal year 2011.
Liquor Group Wholesale is given the distributory rights of Binboa vodka for state level distribution network for the initial two years. Liquor Group Wholesale, Inc. is an emerging alcohol distribution/brokerage organization representing thousands of brands with operations in 33 U.S. states
In April 2011, the distributor began implementing their domestic distribution strategy commencing in Florida; introducing Binboa Vodka to U.S. Due to overwhelming success the Binboa Vodka product line is now moving into Illinois, Michigan, Pennsylvania and Virginia holding the hand of Liquor Group.
Binboa Vodka comes in flavors like: Red Apple, Satsuma, Red Orange and Strawberry, suiting the taste of a wide range of consumers. Mey Icki produces alcoholic beverages in Turkey. Its products include vodka, gin, cognac and brandy, raki, liquor, wine, beer, whisky, and vermouth. The company was founded in 2004 and is based in Istanbul, Turkey.
Diageo, which competes with SABMiller plc. is expanding its presence globally by joining hands with local spirit giants in several rapidly developing countries. With a craving for bolt-on acquisitions in emerging markets, the company enjoys a stake in China's Sichuan Chengdu Quanxing Group.
As part of a joint venture agreement, Diageo produces the Shui Jing Fang brand of ‘baijiu,’ a white spirit that constitutes half of China's alcoholic beverage consumption by volume.
Recently, in January 2011, Diageo entered into a strategic partnership agreement with Hanoi Liquor Joint Stock Company (Halico) in Vietnam. In addition, Diageo has agreed to acquire 23.6% of Halico from Vina Capital Vietnam Opportunity Fund Limited.
The recent economic downturn deterred Diageo and the stiff competition faced from Pernod Ricard and Fortune Brands Inc. (FO) in the spirits business and Anheuser-Busch InBev (BUD) and Molson Coors Brewing Company (TAP) in the beer business makes it an unattractive stock for investors.
Diageo holds a Zacks #4 Rank, which translates into a short-term Sell rating.
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