Unique Technique of Barter Trade

Jul 7, 2014 by

Unique Technique of Barter Trade

A short history of Diageo plc and Cuervo

Diageo plc. is a multinational company which manufactures beverages.By virtue of their long experience from the beginning they have developed finest techniquesof art and knowledge to produce exceptionally excellent quality of world’s most popular brands of beverages in tequila market.
Jose Cuervo is established by Don Joe Antonio de Cuervo in 1795. At present this company is controlled by Backmann family of Mexico descendant of Don Joe Antonio de Cuervo.

The Policy behind the Swap

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Both the above companies have developed some better quality of beverages through their years of experience and knowledge which turned them to produce some world’s most demanded beverages. Thus, Diageo plc. with their quality distilleries is now managing to distribute their product in approximately 180 countries through their own offices in 80 countries. Diageo plc. is listed in London Stock Exchange as well as in New York Stock Exchange. This company has captured a good market share by a capitalisation value of 48.9 billion Pounds which is as per report May 7, 2013. On the other side, Jose Cuervocaptured the world tequila market share by a good volumeand good percentage of U.S. tequila market share which is as per report of July, 2013. Therefore, this two world renowned companies with their good quality and highly demanding brands have concluded to exchange by barter their two knownbrands. The barter transaction will be between Diageo plc’s Bushmills whisky with Cuervo’s Don Julio tequila. Under this agreement, Diageo plc. will take 100% control of Don Julio tequila and by cash $408 million and Cuervo also will take 100% controlling power of famous Bushmills whisky from Diageo plc. It is expecting that the deal may be completed by June 2015.

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