FDBusiness.com

Diageo Sells Part of its Wine Portfolio

 Breaking News
  • EU Agri-food Exports are Holding Strong The value of EU agri-food exports reached €137.9 billion in 2017, corresponding to a sustained increase by 5.1% in value terms compared to 2016. Published by the European Commission, the latest monthly trade report details the export values for different sectors and origin. Major gains in annual values have been achieved in agri-food exports to the USA [...]...
  • Danone Continues to Make Solid Progress With Strong 2017 Results Danone has posted consolidated sales of €24.68 billion for 2017, up by 2.5% on a ‘like-for-like New Danone’ basis (reflecting the integration of the WhiteWave acquisition), including a 3.9% rise in value showing continued mix and value enhancement in all business sectors, which offset a 1.4% decline in volume. Full-year reported sales were up 12.5% [...]...
  • Nestlé Reports Weak Sales But Margins Improve Nestlé has reported a 0.4% increase in sales to SFr89.8 billion (€77.7 billion) for 2017. Net divestments reduced sales by 1.9%, largely related to the creation of the Froneri ice cream joint venture. Foreign exchange had a minimal negative impact of 0.1%. Organic growth was 2.4%, with 1.6% of real internal growth (RIG) and pricing [...]...
  • Customized Ingredient Solutions are the Way to More and Better Gluten-free Bakery DuPont Nutrition & Health has announced the results of a consumer survey where consumers in four key European markets were asked about their attitudes to gluten-free bakery products. The survey results have revealed untapped potential for bakers to develop more and better-quality products with extra nutritional benefits. While only an estimated 1 percent of the population [...]...
  • Leading Retailers Join the UK’s Big Plastics Debate Coca Cola, Co-Op, Asda, Marks & Spencer and Iceland will come together under one roof for the first time at Packaging Innovations 2018, to talk about the UK’s hottest topic – plastics in packaging. These leading brands will form a panel, as part of the show’s Big Plastics Debate, discussing the road ahead for packaging [...]...

Diageo Sells Part of its Wine Portfolio

Diageo Sells Part of its Wine Portfolio
October 15
12:07 2015

Diageo has agreed to sell its US-based Chateau and Estate Wines and the UK-based Percy Fox businesses to Treasury Wine Estates for a consideration of $552 million. The net proceeds of approximately £320 million, after tax and transaction costs will be used to repay borrowings. The transaction, which is subject to regulatory approval, is expected to complete around the end of the calendar year.

“Diageo’s strategy is to drive stronger, sustained performance through focus on our core portfolio,” says Ivan Menezes, chief executive of Diageo. “Wine is no longer core to Diageo and this sale gives us greater focus.”

He adds: “With the completion of this transaction Diageo will have released £1 billion from the sale of non-core assets since the start of the financial year. This proactive portfolio approach has focused the business, enhanced our financial strength, improved our returns and strengthened the business, positioning us even more firmly to deliver our performance ambition.”

Following completion of this transaction Diageo’s wine interests are limited to Justerini & Brooks Wine Merchants, the Argentinian wine business of Navarro Correas, the wine brands of Mey Icki and USL, the Chalone brand and assets and the Acacia winery and vineyard.

Michael Clarke, chief executive of Treasury Wine Estates, says: “This acquisition will transform our US business into a larger player of scale in the attractive Luxury and Masstige segments of the high growth US market. The additional supply of Luxury and Masstige wine will be a game-changer for our US brands, providing us with an immediate opportunity to step-change our growth in the US, Canada, Asia and Latin America.”

TWE will also acquire the Blossom Hill wine brand in the UK, the second largest wine brand in the UK by volume and value last year. The acquisition is subject to certain regulatory approvals, including anti-trust approval in the US, and is expected to complete in approximately three months.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • February 25, 2018fish international
  • February 27, 2018Warsaw Gastro Show
  • February 27, 2018Int'l Food Fair
  • February 28, 2018GAST
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements