Diageo sells its port and sherry brands for £51.9m
- Monday 3 September 2001
Full ownership of Croft will go to Gonzalez Byass, a major Spanish sherry producer with established brands that include Tio Pepe and La Concha. The company will also take control of Diageo's assets in Spain.
Port shipper Taylor Fonseca will acquire Diageo's port holdings in Portugal, the Delaforce brand and the right to market the Croft brand around the world, although Diageo will retain sales rights over Croft Brandy.
A spokeswoman for Diageo said, 'The company has reviewed its brands and has decided Croft and Delaforce no longer fit its portfolio. Neither are at the premium end of the wine market - an area we are looking to concentrate on at the moment.'
The brands sold today are not part of the package of Seagram's wines and spirits businesses acquired by Diageo and Pernod Ricard at the end of last year. However, the two companies have announced their intention to auction off several Seagram brands in the near future, including UK high street retailer Oddbins and Sandemans port.