Diageo targets Asia-Pacific challenges with new regional hub

By Neil Merrett

- Last updated on GMT

Related tags Asia pacific United states Diageo

Drinks giant Diageo has announced the creation of a combined
regional hub for its Asian Pacific operations as it looks to
increase its focus on distributing its brands in the region.

Under the name of Diageo Asia Pacific, the group will pool together its company's operations in Asia, Greater China, and Australia, to allow it to better adapt to challenges in the regions various markets.

The announcement marks the growing importance of the alcoholic beverage market to drinks manufacturers in the area, which lies currently behind stronger markets in Europe and North America.

The group had previously split its operations in three geographical regions, encompassing North America, Europe and International.

As well as controlling its interests in the Asia Pacific territory, Diageo International accounted for the markets of Africa, Latin America & Caribbean.

According to the groups end of year results as of June 2006, the International region accounted for only 29 per cent of its global oraganic profit - a figure it is keen to increase.

The group hopes that focusing solely on Asia Pacific will allow it to better adapt to the requirements of such a diverse market.

"We believe this reconfigured organisation gives us a better platform from which to deliver our significant top and bottom line growth expectations,"​ said Paul Walsh, Diageo's CEO.

"The creation of [Diageo] Asia Pacific builds on the performance delivered by the International region,"​ added Walsh. "It enables us to leverage the potential of our competitive position in all markets of Asia Pacific."

The company's fourth regional committee will be headed by John Pollaers, former managing director of Diageo Asia, and will come into operation from 1 February 2007.

Diageo holds one of the most diverse portfolio's in the alcoholic beverage market including Guiness, Smirnoff, Baileys, and Sterling Vineyards wines.

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