China buys into Diageo

ChinaÔÇÖs sovereign wealth fund has bought 1.1 per cent of UK alcoholic drinks firm Diageo, it was reported today. In a move to diversify its investments, China Investment Corporation (CIC) now has a stake in the drinks maker worth ┬ú221 million. CIC has recently been making investments outside the financial sector, including some in mining and property. It also has a 0.5 per cent stake in UK supermarket Tesco, according to the Financial Times. The size of CICÔÇÖs stake makes it DiageoÔÇÖs ninth largest shareholder. London-based Diageo expects China to rival the US as one of its most important markets by 2021, the report said.  Last year the company set up a new arm, Diageo China, to build up its presence in the country. Last month, the firm launched a new vodka called Shanghai White, which it plans to sell in Hong KongÔÇÖs bars, clubs and restaurants before commencing distribution across the rest of China.  Diageo is the worldÔÇÖs biggest spirits group, with brands including Smirnoff, Guinness and Jos├® Cuervo. It has offices in over 80 countries worldwide.  *┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á *