Spirit maker Diageo is weighing strategic options for its China business, including a potential asset sale, as it reviews its global portfolio.
The London-based company has hired investment banks to advise on its China operations, which include a majority stake in Sichuan Swellfun, a Shanghai-listed baijiu producer, according to the South China Morning Post.
Diageo has faced several challenges in recent months, including tariff increases in its key US market and shifting consumer habits, particularly among younger drinkers who are trending toward lower alcohol consumption, Reuters said.
Diageo declined to comment on the reports. The banks involved in the review also declined to comment.
The review is reportedly part of a broader strategy under Diageo’s new CEO, Dave Lewis, who took the role this month and is seeking to streamline the company’s operations and focus on core brands and markets.
