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Diageo Chateau & Estate sells Bordeaux asset
Diageo Chateau & Estate Wines has sold its Barton & Guestier Bordeaux business to French Wine concern Castel Freres SAS.
The sale, which is part of a previously-announced review of Diageo’s wine operations. includes brands, inventory and land, including Chateau Magnol.
The terms of the deal were not disclosed.
In June, Diageo announced that it was undertaking a sale and leaseback deal with Realty Income Corporation for two of its Napa Valley wineries for USD$269 million as part of its reworking of its North American business, having previously announced that non-priority brands would be sold with the loss of up to 90 jobs.
The company declared its intention to focus on core strategic brands like Beaulieu Vineyard wines, Sterling Vineyards, Chalone, Acacia, Rosenblum Cellars and Provenance, in an effort to safeguard Diageo’s long-term commitment to the wine business.
In addition to its US wine brands, DC&E will continue to import many fine wines to the US from France and other countries and remains committed to its existing portfolio of French wines from Burgundy and Alsace.
"DC&E remains committed to our French Agency business and our dedicated Diageo distributor network across the country will continue to handle these wines as we have done with pride and success for many years," said Sandra LeDrew, president, sales and marketing at DC&E.
In markets outside the US, Diageo Wines Europe will seek to continue to grow its involvement in Bordeaux wines through two separate but complementary businesses – Vignobles Internationaux SA (VISA) and Justerini & Brooks.
Bordeaux-based VISA will continue to market and commercialise Bordeaux wines, concentrating on key merchants and importers in Europe and Asia.
London-based merchant Justerini & Brooks is tasked with developing its sales of Bordeaux wines within its fine wine portfolio with private individuals and premium hotels and restaurants, including a continuing commitment to en primeur.
Alan Lodge, 21.07.2010