We have a clear long-term strategy that enables us to allocate resources to brands that win in key consumer occasions and categories. In Asia Pacific, the middle class is growing and their expectations are becoming increasingly demanding. As a result, we manage our portfolio strategically, focusing on developing our premium and super deluxe segments and encouraging consumers to drink better, not more. We group the countries in Asia Pacific into six main markets.
- North Asia
- Greater China
- South East Asia
- Travel Retail and Asia and Middle East
Our Asia Pacific business comprises seven markets: India (including Nepal and Sri Lanka), Greater China (China mainland/Chinese mainland, Taiwan, Hong Kong and Macau), Australia (including New Zealand), South East Asia (Vietnam, Thailand, Philippines, Indonesia, Malaysia, Singapore, Cambodia, Laos, Myanmar), North Asia (Korea and Japan) and Travel Retail Asia and Middle East.
We have distilleries in Chengdu, China, that produce Baijiu and in Bundaberg, Australia, that produce Bundaberg Rum. Our manufacturing plant in Bali produces the highest quality spirits for the Indonesian market. United Spirits Limited (USL) in India operates 15 manufacturing sites across the country. In addition, USL and Diageo brands are also produced under licence by third party manufacturers. We have bottling plants in Thailand and Australia with ready-to-drink manufacturing capabilities.
Route to consumer
In South East Asia, spirits and beer are sold through a combination of Diageo companies, joint venture arrangements, and third party distributors. In Thailand, Malaysia and Singapore, we have joint venture arrangements with Moët Hennessy. In the Philippines and Vietnam, we operate wholly owned subsidiaries. In addition, we own a 45.57% equity stake in Hanoi Liquor Joint Stock Company in Vietnam, which manufactures and sells vodka. In Indonesia, Guinness is brewed by and distributed through third party arrangements.
In Greater China, we have a 63.17% equity investment in Sichuan Shuijingfang Company Limited as well as our wholly owned entity, Diageo China Limited. In Taiwan, we operate a wholly owned subsidiary. In India, we manufacture, market and sell Indian whisky, rum, brandy and other spirits through our 55.94% shareholding in USL, which we also use to sell our own brands too.
In Australia, we manufacture, market and sell Diageo products. In New Zealand, we operate through third party distributors. In North Asia, we have our own distribution company, which is located in South Korea. In Japan, we sell products through our wholly owned entity, Diageo Japan, as well as through joint venture agreements with Moët Hennessy. Airport shops and airline operators are serviced through a dedicated Diageo sales and marketing organisation. In the Middle East, we sell our products through third party distributors.