Diageo Plc is selling 19 lower-end spirits brands to Sazerac for $550 million, as it focuses on its premium labels such as Johnnie Walker, reports Reuters. The sale includes whisky brands such as Seagram's 83, Seagram's Five Star, Seagram's VO, Goldschlager cinnamon schnapps, and Jamaican rum Myers's. A Berenberg analyst claims the brands Diageo is selling were seeing sales decline by as much as 10 percent a year.
The divestiture is the latest move from the spirits company to trim its portfolio and concentrate more closely on its core business. Diageo has been expanding the reach and improving the marketing of its premium, global brands, and has made a number of acquisitions, including George Clooney's tequila Casamigos and Belsazar vermouth. Full Story
Related: Craft Spirits Market to See Significant Growth; Sazerac Plans To Invest $66 Million in Former General Mills Facility.
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