Diageo, the world’s biggest drinks company, is reported to be “in talks” to sell its wine unit to Australian producer Treasury Wine Estates (TWE).
Yesterday several media outlets reported that talks were “well advanced”, and that an official announcement would be made later this month. Diageo’s wine portfolio, which includes such well-known brands as Blossom Hill and Piat d’Or, is not seen by the company as core to its business, which includes several global market leaders in spirits, liqueurs and beers, such as Smirnoff, Johnnie Walker, Guinness, Gordon’s and Baileys. Diageo has been disposing of non-core assets in recent years.
If it is successful, TWE will add Blossom Hill, Piat d’Or, Chalone, and Sterling Vineyards (among others) to a portfolio that includes Matua, Beringer, Wolf Blass, Penfolds and Lindemans.