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Diageo expanding in S’pore to leverage regional growth potential

SINGAPORE — Premium drinks company Diageo continues to eye further growth in the Asia-Pacific’s booming markets, where it already holds a leadership position but plans to further expand its regional capabilities to exploit the expected increase in demand for spirits.

Those at the opening included Ms Joy Rice (left) and Ms Thien Kwee Eng, EDB’s Assistant Managing Director. Photo: AKA Asia

Those at the opening included Ms Joy Rice (left) and Ms Thien Kwee Eng, EDB’s Assistant Managing Director. Photo: AKA Asia

SINGAPORE — Premium drinks company Diageo continues to eye further growth in the Asia-Pacific’s booming markets, where it already holds a leadership position but plans to further expand its regional capabilities to exploit the expected increase in demand for spirits.

As part of that process, the company — whose brands include Johnnie Walker, Crown Royal and Guinness — is building its presence in Singapore, which also houses its Asia-Pacific hub.

Diageo already commands more than 30 per cent of market share in the region, which will account for 20 per cent of its global revenue by 2015, said Ms Joy Rice, its Director for Asia-Pacific Supply Chain Support.

“The region is volatile but brings many growth opportunities. Asia is now the world’s No 1 spirits market and is expected to be home to 54 per cent of the global middle class by 2020,” she said.

And this emerging middle class marks a huge opportunity for Diageo here, Ms Rice added. “Projected spending in the Asia-Pacific will almost double to US$16 trillion (S$20.2 trillion), accounting for 75 per cent of the increase globally during the same period.”

These comments were made ahead of the launch of Diageo’s newest technical centre in Singapore yesterday. The facility at Tuas will enhance liquid and packaging development capabilities in the Asia-Pacific, while supporting product innovations to better tap the region’s growing appetite for quality spirits.

The company announced on the same day that it is spending about £233 million (S$453 million) to increase its stake in Chinese spirits maker Sichuan Shuijingfang to 39.7 per cent, from 21.05 per cent.

“With the launch of the Asia-Pacific technical centre, we are in a better position to realise the immense emerging middle-class potential by supporting the development of new product innovations designed to appeal to the segment,” said Ms Rice.

The facility is the company’s third in Singapore, joining a distribution and product finishing centre as well as a super premium finishing centre to complete its Asia-Pacific hub here.

“By making strategic investments in our supply chain… we are well- poised to serve the next generation of Asian consumers who favour customisation and uniqueness,” Ms Rice said.

With the addition of the new facility, Diageo will now have 350 employees in Singapore.

Meanwhile, Diageo’s growing presence in the Republic is another step forward for the Economic Development Board (EDB), which in recent years has been working to attract more major consumer goods companies to set up operations here.

“We are delighted that Diageo is expanding its Asia-Pacific hub, with new technical capabilities to enable production innovation,” said Ms Thien Kwee Eng, Assistant Managing Director of the EDB, yesterday.

“These capabilities are the first of their kind established by a spirits company in Singapore, and they affirm Singapore’s role as a leading hub in Asia for consumer businesses to innovate and grow global brands,” Ms Thien said.

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