Drinks giant Diageo agrees sale of wine businesses
- Credit: PA
Johnnie Walker and Guinness owner Diageo has agreed a 552million US dollar (£360.5m) deal to sell its main wine businesses, including the Blossom Hill and Piat d’Or labels.
The drinks gaint, which also brands includiing Bell’s and Smirnoff, is selling its UK wine arm Percy Fox and US-based Chateau and Estate Wines to Australian giant Treasury Wine Estates, the group behind names such as Penfolds and Wolf Blass.
The deal sees Diageo largely pull out of the wine market. Ivan Menezes, chief executive, said: “Wine is no longer core to Diageo and this sale gives us greater focus.”
Treasury Wine said that the acquisition of Chateua and Esate Wines would “transform” its presence in the US.
Diageo said it would make £300m net from the wine sale, which it plans to use to pay down company debts. It means the group will have freed-up £1billion from the sale of assets since the start of the year.
You may also want to watch:
It leaves Diageo with a minimal interest in wine, including Justerini & Brooks Wine Merchants, the Argentinian wine business of Navarro Correas, Mey Icki and USL wine brands and the Acacia winery and vineyard.
FTSE 100-listed Diageo, which operates in 180 countries, has pinned its growth on an expanding middle class in emerging markets in Latin America and Asia who could afford its premium brands such as Johnnie Walker, Captain Morgan and Tanqueray.
- 1 Postman who abandoned 'undriveable' van wins unfair dismissal claim
- 2 Full list: Everyone in Suffolk in the Queen's Birthday Honours 2021
- 3 A14 and A12 set for major upgrade work
- 4 Town face competition from Championship club for Rotherham midfielder Crooks
- 5 Coronavirus 'growth rate' rises further in East Anglia
- 6 Jack Whitehall praises award-winning Suffolk gastropub after visit
- 7 Two men arrested after police uncover cannabis farm
- 8 Former Ipswich Town boss Keane as you've never seen him before
- 9 Glass found in popular paddling pool forcing it to close
- 10 Caravans pitch up at Felixstowe car park
In recent years, however, the global slowdown has pegged back the firm’s growth and the strong pound and currency movements have given it an added headache in recent months, with the group warning in September this would knock its profits by a bigger-than-expected £150m this year.