Drinks giant Diageo has now offloaded the majority of its wine interests with the sale of its Argentinian business to the country’s largest producer, Grupo Peñaflor.
Peñaflor will add the Navarro Correas and San Telmo wine brands, as well as their production sites and vineyards, to a portfolio that already includes Finca Las Moras, Trapiche and Bodegas Santa Ana.
The sale for an undisclosed sum follows Diageo’s disposal last month of its US-based Chateau and Estate Wines, and UK business Percy Fox, in a US$600m deal with Penfolds owner Treasury Wine Estates.
Diageo is also reported to have put its Chalone California wine business up for sale after Treasury Wine Estates opted not to include it in the deal.
With the sale of Chalone, Diageo’s only remaining wine interests would include London merchant Justerini & Brooks, plus local wine brands owned by Mey Içki in Turkey and USL in India.
Speaking after the sale to Treasury, which included Beaulieu Vineyards, Sterling Vineyards, Blossom Hill and Le Piat d’Or, Diageo CEO Ivan Menezes said wine was ‘no longer core’ to the business.
Under the terms of the Peñaflor deal, which is likely to be completed early next year, the Argentinian company is appointed local distributor of Diageo’s international spirits brands and, after an interim period, will jointly produce with Diageo its domestic spirits brands across Argentina.