Diageo sells raft of brands to Sazerac
Diageo has sold 19 brands to The Sazerac Company for US$550 million as part of its strategy to increase its focus on premium spirits.
The brands include a number of Seagram’s variants, Goldschlager, Myers’s, Parrot Bay, Romana Sambuca, Popov, Yukon Jack, Stirrings, The Club, Scoresby, Black Haus, Peligroso, Relska, Grind, Piehole, Booth’s and John Begg.
Diageo has also agreed to enter into long-term supply contracts with Sazerac on completion for five of the brands each for a period of ten years. Supply of all other brands will transition to Sazerac within a one-year period from completion.
Sazerac said it plans to work with its existing partners to explore the global export potential for each of these brands.
Jake Wenz, Sazerac’s chief operating officer, said: “We are delighted to acquire these iconic brands from Diageo and are looking forward to working closely with our wholesalers and customers to provide the focus to maximise the full global potential of the brands.”
Ivan Menezes, chief executive of Diageo, said: “The disposal of these brands enables us to have even greater focus on the faster growing premium and above brands in the US spirit portfolio.”
The sale of the brands is expected to be completed by early 2019.