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Diageo Eyeing 100% of LVMH Drinks Business?

Diageo may want LVMH drinks.

Bain & Company, a U.S. retail consultant company, published a study recently that claims a surge in luxury sales of apparel, shoes, accessories, leather goods, and perfumes, despite the sluggish economy because, as Claudia D'Arpisio, a company spokesperson said, "The recovery has been faster than expected."

The company expects a 3 to 5 percent increase in luxury goods sales in 2011, and points out that the market for luxury goods is likely strongest with young males in China.

Headed by France's richest man, Bernard Arnault, LVMH deals in all sorts of luxury goods and the company recently took a 14% stake in Hermes. Analysts think that's only the start of a takeover bid.

Gallery: Diageo Eyeing LVMH Drinks Business?