Diageo Plc, the world's largest liquor maker, isn't in talks to acquire Sichuan Swellfun Co, the Chinese spirit producer said. The companies are discussing "business cooperation," it said.

Swellfun "has been in touch with several international liquor companies, including Diageo, on business cooperation, such as helping us sell products overseas," the company said in a statement. "We haven't reached any agreement yet and haven't been in talks on an acquisition."

Swellfun made the statement in response to local media reports that Diageo, whose brands include Johnnie Walker whisky and Guinness, was in advanced talks to buy the company.

Beverage makers including Diageo and its main competitor, Paris-based Pernod Ricard SA, are expanding in China, betting that rising Chinese incomes will boost demand for imported spirits. China is set to surpass Japan as the world's second-largest spirits market by value with sales estimated to reach US$11.4 billion this year, Diageo said.

"Diageo is interested in developing its business relationships in China and has discussed possible cooperation with a number of potential Chinese partners," Diageo said.

Diageo entered China in 1995, selling imported brands including Johnnie Walker and J&B.

Source:佚名