UK-based spirits maker Diageo is set to sign an agreement with India-based United Spirits, in which its owns 25.02% stake.
Under the terms of the agreement, United Spirits will sell Diageo brands in India, effective October 2013.
Commenting on the agreement, Diageo spokesperson told the Press Trust of India that Diageo has agreed on the principles of a proposed sales agency agreement with USL under which USL will be a sales agent for all Diageo brands in India.
"We would expect to formalize this arrangement shortly and that the arrangement will be effective from October 1, 2013," he added.
In addition, United Spirits will provide sales promotion services to Diageo India, while Diageo India will continue to manage strategy, marketing, import, manufacture, and bottling of the brands in the country.
Diageo produces, distills, brews, bottles, packages, and distributes spirits, beer, wine, and ready to drink beverages in North America, Western Europe, Eastern Europe, Turkey, Africa, Latin America, the Caribbean, and the Asia Pacific.
The company offers Johnnie Walker Scotch whiskey, Crown Royal Canadian whiskey, J&B Scotch whiskey, Buchanan's Scotch whiskey, Windsor Premier Scotch whiskey, Bushmills Irish whiskey, Smirnoff vodka, Ketel One vodka, Croc vodka, Captain Morgan rum and rum based products, Baileys Irish Cream liqueur, Tanqueray gin, and Guinness stout.
