Diageo Reportedly Considers Offers For Wine AssetsMay 4, 2015
Facing a challenging landscape across many of its key established and emerging markets, Diageo is reportedly examining options to offload some of its wine assets. Multiple reports out of the U.K. said Diageo has been approached by potential buyers for parts of its wine business, which includes Sterling Vineyards, Beaulieu Vineyard, Provenance, Acacia, Chalone Vineyard, Rosenblum Cellars and Blossom Hill, among other brands, and accounts for about 4% of the drinks giant’s net sales. At press time, Diageo hadn’t yet responded to SND’s request for comment.
According to Impact Databank, Diageo’s U.S. wine business rose 2% to 3.8 million cases last year. Within Diageo’s wine portfolio in the U.S., Sterling Vintner’s Collection, Rosenblum and Acacia posted volume gains in 2014, while Chalone and Beaulieu declined.
Company-wide, Diageo saw net sales decline 0.3% in the nine months through March, as formerly high-flying emerging markets like Latin America and Asia weighed down results, even as the group’s North America region returned to positive growth, eking out a 0.2% advance for its fiscal year to date.
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