Diageo tests market for Sichuan Swellfun stake sale

United Kingdom | Diageo is reportedly considering the sale of its controlling stake in Chinese baijiu producer Sichuan Swellfun as part of a wider programme of disposals. The move would allow Diageo’s new leadership to cut debt. The new CEO, Sir Dave Lewis, started his role on 1 January.

If rumours are to be believed, Diageo is poised to sell its 63 percent-plus stake in Shanghai-listed Sichuan Swellfun, the Chinese group which produces the Shuijingfang brand of baijiu. Other assets in China could also be sold.

Bloomberg reports that banks have already approached potential buyers. Sichuan Swellfun has a market capitalisation of about USD 2.7 billion, valuing the stake at approximately USD 1.7 billion. Shares in Sichuan Swellfun have dropped 14 percent in 2025, and in November, Diageo reported a double-digit sales decline in China.

Under interim Chief Executive Nik Jhangiani Diageo has been seeking ways to offload underperforming assets and reduce debt. In December, it announced its plans to sell its 65 percent stake East African Breweries to Asahi for USD 2.3 billion, and it is widely expected to dispose of its Indian cricket team, Royal Challengers Bangalore, which is said to be worth USD 2 billion. This disposal could happen in the next few weeks before the new Indian cricket season begins.

If all three disposals take place, Diageo could raise approximately USD 6 billion.