"Halico is Vietnam's number one local spirits company with the number one vodka brand, Vodka Hanoi," said Diageo Asia Pacific president Gilbert Ghostine. "Its strong distribution and recent investment into its state-of-the-art production facility speaks of its ambitions in this market."
"A degree of uncertainty exists over the next six months trading," said company secretary Peter Horton. "The market is expected to remain competitive with a less confident consumer who is spending less money while having a greater propensity to save."
The deal will make PepsiCo the largest food and beverage business in Russia and strengthens its position in Eastern European and Central Asian markets. The acquisition will also raise PepsiCo's annual global revenues from nutritious and functional foods from £6.3bn to £8.1bn.
The Allerding family, which previously owned the business outright, retains a third of the company's shares. VanWylick recently sold a further third of the business to fellow German group Gemüsering.