Diageo looks to smaller acquisitions for growth in emerging economies

GLOBAL drinks giant Diageo — which owns Guinness and undertakes 35% of its total brewing from Ireland — will continue to focus on small bolt-on acquisitions to boost its presence in emerging economies, rather than pursue big ticket deals.

Speaking in London, yesterday, at the presentation of the group’s first half results, chief executive Paul Walsh said that the company is “moving into growth mode” and would continue to progress through further innovation on the products side, improving its supply footprint, increasing marketing spend and pursuing market share growth in emerging markets.

However, Mr Walsh, added that big consolidation opportunities are about what presents itself at any given time and that if such an opportunity did come up, Diageo — given its strong balance sheet and lack of debt — would be in “a good position to act.” He firmly said, however, that increasing foothold in upcoming geographical markets would be the priority.