Case Study 4: Diageo in Turkey: The Lion’s Milk Versus Global Spirits

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.