Australian winery Treasury Wine Estates has acquired the British and North American wine activities from spirit manufacturer Diageo for a sum of 550 million dollars (480 million euro).
Diageo wants to focus on core
Treasury Wine is currently already one of the world's largest wineries, with brands like Wynns, Wolf Blass and Beringer. Now that it has acquired Diageo's wines (with brands like Sterling Vineyards, Moët & Chandon and Vignobles Internationaux), it wants to turn its attention to the higher echelons of the American market and double its American continent-based premium wine turnover.
The sale is the next step in Diageo's strategy to focus more on its "core business", which is liquor sales. Wine was only worth 4 % of the company's turnover, which also owns brands like Smirnoff and Captain Morgan.
Treasury wants to attract nearly 350 million dollars (300 million euro) from its shareholders in order to pay for most of the investment.