Monday, March 09, 2015

Could Ethiopia Be The Bright Spot For Diageo?

(Mar 09, 2015, (Forbes))-- Diageo, the world leader in alcoholic beverages, has been facing tough circumstances recently in their traditional markets. For one, they have been losing share in the U.S., which accounts for over 20% of net sales and 45% of profits, on account of uneven economic growth, lack of price competitiveness, and changes in consumer preferences.

Second, their market in China has been grappling under the pressure of a massive anti-corruption drive, which has adversely impacted sale of many products including the highly popular Chinese liquor, “baijiu.”

In this situation, reprieve for the company comes from its operations in Africa, which according to CEO Ivan Menezes should become “one of the pillars of the next decade” to account for 20% of the company’s sales.

Menezes sees Africa growing faster than the company’s average, with Ethiopia becoming one of the “cornerstone markets” going forward. So what makes Ethiopia the lucrative market it is projected to become? Read more from Forbes »

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