Drinks giant Diageo has confirmed the sale of its major wine interests in the UK and the US, as the company follows through on its plans to focus on spirits and beer.
The company has sold its US wine businesses, Chateau and Estate Wines, as well as UK-based Percy Fox, for $552m (€507m) to Australian vintner Treasury Wine Estates.
The group announced in October it would sell to Treasury, after its chief executive Ivan Menezes admitted that wine was “no longer core” to Diageo’s business. Diageo's assets include the Sterling and Beaulieu Vineyards, and Blossom Hill, Piat d’Or brands.
It is the latest move in a number of key decisions being made by Menezes, as the company also recently sold stakes in two beer brands to Heineken for $781 million and is considering the sale of its iconic Guinness brand.
Diageo will use the net proceeds of $489 million from the sale to repay loans, the group said in a statement.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by John Golden. To subscribe to ESM: The European Supermarket Magazine, click here.
