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Diageo has announced the sale of its well-known coffee-cream liqueur brand, Sheridan’s, to Casa Redondo, a prominent Portuguese beverage-alcohol company.

The divestiture aligns with the global beverage alcohol giant's ongoing efforts to streamline its brand portfolio and enhance shareholder value.

Dayalan Nayager, Diageo’s president for Europe and chief commercial officer, said: "The sale of Sheridan’s is another example of our sharp focus on effective portfolio management and maximising shareholder value".

This decision follows a series of recent transactions in Europe, including the sale of its Cacique rum brand to Bardinet, Venezuelan rum brand Pampero, and fruit-flavoured liqueur brand Safari – which has also been sold to Casa Rendondo – as Diageo sharpens its focus on its core strengths in the premium spirits market

Sheridan’s, a distinctive two-part liqueur known for its unique packaging and flavour profile, boasts a presence in over 50 countries, particularly across Europe. The brand's established global footprint makes it an attractive addition to Casa Redondo’s portfolio.

Daniel Redondo, CEO of Casa Redondo, commented: “Sheridan’s is a unique brand with strong consumer recognition and an enduring identity. Bringing it into our portfolio represents a pivotal moment for Casa Redondo."

The acquisition not only enhances Casa Redondo’s international presence but also reflects its ambition to build a more globally competitive business.

Ricardo Redondo, CFO of Casa Redondo, added that the acquisition consolidates their position in the global market. "This step underlines our long-term commitment to sustainable growth and building stronger partnerships across international markets," he noted.

As part of the acquisition, a transitional services agreement has been established to ensure a seamless transition and continuity of operations for Sheridan’s post-sale.

This agreement aims to maintain brand integrity and consumer trust during the transition period, allowing Casa Redondo to leverage Diageo’s distribution networks and marketing strategies.

The sale of Sheridan’s to Casa Redondo marks a significant milestone for both companies. For Diageo, it represents a continued focus on optimising its brand portfolio in a competitive market.

For Casa Redondo, the acquisition signifies a strategic move to enhance its global presence and diversify its offerings in the beverage-alcohol sector.