Diageo: Drinking the Lion's Milk in Turkey

Tuncalp, D. & Ozturkcan, S. (2017), "Diageo: Drinking the Lion's Milk in Turkey," chapter in: Strategic Marketing Cases in Emerging Economies, edited by Atanu Adhikari & Sanjit Roy, p. 47-60, Springer International Publishing: Cham, Switzerland. ISBN 978-3-319-51543-4. doi: 10.1007/978-3-3

Posted: 26 Sep 2018

See all articles by Deniz Tuncalp

Deniz Tuncalp

Istanbul Technical University

Selcen Ozturkcan

Department of Marketing, School of Business and Economics, Linnaeus University

Date Written: May 4, 2017

Abstract

Diageo, the world’s spirits giant, acquired the Turkish spirits market leader Mey Icki in 2011. By the time, Diageo had approximately 30% market share globally, while Mey Icki had approximately 70% domestic market share. Mey Icki had enjoyed benefits and perks of being a state-owned company, until TGP Capital, a US based private-equity firm, bought Mey Icki for $800 million in 1996 from the privatization administration of Turkey. Five years later, TGP Capital sold Mey Icki to Diageo PLC for $2.1 billion. Enduring two M&As, on top of being previously state-owned, brought along many managerial and strategic issues to Mey Icki despite its dominant position in the market via Yeni Rakı (a.k.a. the Lion’s Milk), also renown as the national spirit of Turkey. On the other hand, Diageo had its own agenda for differentiation throughout its international markets, and the comprehensive distribution network that it was able to lay its hands on in Turkey, ship Yeni Rakı to different markets of the world, or rose appetite for its world-known brands, such as Johnnie Walker whisky, Smirnoff vodka and Captain Morgan’s rum in Turkey, one of the largest and fastest growing markets of Europe.

Keywords: M&A, Diageo, MEY, Post-Merger Marketing Strategies

JEL Classification: M00

Suggested Citation

Tuncalp, Deniz and Ozturkcan, Selcen, Diageo: Drinking the Lion's Milk in Turkey (May 4, 2017). Tuncalp, D. & Ozturkcan, S. (2017), "Diageo: Drinking the Lion's Milk in Turkey," chapter in: Strategic Marketing Cases in Emerging Economies, edited by Atanu Adhikari & Sanjit Roy, p. 47-60, Springer International Publishing: Cham, Switzerland. ISBN 978-3-319-51543-4. doi: 10.1007/978-3-3. Available at SSRN: https://ssrn.com/abstract=3236161

Deniz Tuncalp

Istanbul Technical University ( email )

Ayazaga Kampusu
Fen Edebiyat Fakultesi
İstanbul
Turkey

Selcen Ozturkcan (Contact Author)

Department of Marketing, School of Business and Economics, Linnaeus University ( email )

Kalmar, SE-391 82
Sweden
+46 (48) 049-7189 (Phone)

HOME PAGE: http://lnu.se/en/staff/selcen.ozturkcan/

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