Diageo sells 19 brands to US manufacturer Sazerac :: Investor.bg

Diageo sells 19 brands to US manufacturer Sazerac

Photo: Reuters

A British giant in the production of top alcoholic beverages, Diageo sold a portfolio of 19 brands to the US company Sazerac for $ 550 million (£ 427 million).

The list includes three varieties of Seagram whiskey, Romana Sambuca, and a non-existent Booth goth, the BBC reported.

Diageo points out that sales will enable companies to focus on their premium brands in the US.

The proceeds of the transaction, which should be approximately 340 million pounds, will be returned to shareholders in the form of a share buyback, the manufacturer said.

In the past, Booth enjoyed popularity in the UK, but production ended in 2017. Nowadays vintage bottles of the 1960s and 1970s are priced at £ 250.

Sazerac is one of the oldest family distilleries, operating in the territory of ten states, including many other countries such as the United Kingdom, Ireland, France, India, Australia and Canada.

Diageo, whose portfolio includes brands such as Guinness, Smirnoff and Johnnie Walker, also says it has agreed to conclude a 10-year supply agreement with Sazerac. UK Chief Executive Officer Ivan Menesse said that "Diageo has a clear strategy for achieving consistent, effective growth and value creation for our shareholders."

The contract is pending approval by the regulatory authorities and is expected to be completed by the beginning of 2019.

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