Diageo has agreed to sell its major wine interests, including UK brand Blossom Hill, to Australian firm Treasury Wine Estates for $552m (£362m).
The drinks company will offload its UK-based Percy Fox business, which also includes the Piat d'Or brand, as well as US-based Chateau and Estate Wines, in a deal expected to conclude by the end of the year.
Ivan Menezes, Diageo chief executive, said completion of this transaction means the FTSE 100 company will have released £1bn from the sale of non-core assets since the start of the financial year in July. The group recently sold its 57.9 per cent stake in Jamaican brewer Desnoes & Geddes, producer of Red Stripe, to Heineken.
“Diageo’s strategy is to drive stronger, sustained performance through focus on our core portfolio and today’s announcement is another element of that strategy in action,” he added. “Wine is no longer core to Diageo and this sale gives us greater focus.”
Treasury Wine Estates' brands include Penfolds, Wolf Blass, Lindermans and Matua.