Diageo’s Indian subsidiary United Spirits has sold its wine division Four Seasons Wines in a move to focus on its core brands in the country.
United Spirits said it has offloaded the unit and associated brands to Grover Zampa Vineyards and Quintela Assets.
The company stressed the divestment of Four Seasons Wines (FSWL) is in line with its strategy to continue to monetise its non-core assets, including subsidiaries.
Diageo India executive director and chief financial officer Sanjeev Churiwala said: “This deal brings us a step closer to the structural rationalisation and simplification of our India business.
“The FSWL wine business is a niche but a small part of the overall Diageo India portfolio and the sale will enable us to focus on our premiumisation strategy and grow our core spirits business in India.”
The move comes months after Diageo announced the sale of 19 brands to US firm Sazerac for $550 million as it aims to focus on growing its premium spirits portfolio. Brands included in the transaction included Seagram’s VO, Goldschlager and Myers’s.
The London-headquartered company, which owns brands such as Guinness, Baileys and Johnnie Walker, has since revealed plans to create a $130 million distilled spirits manufacturing facility in Kentucky, to support its growth ambition in the bourbon and American whiskey categories.
The proposed facility will consist of a distillery, dry house, and warehousing in Lebanon, Marion County, with the capability to distil a variety of American whiskey brands.
© FoodBev Media Ltd 2019
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