Diageo has sold its Barton & Guestier Bordeaux wine business to France’s largest wine company, Castel Frères, for an undisclosed sum.

The sale, which covers the company’s brands, inventory and land, including Chateau Magnol, comes as the UK drinks giant continues a wholesale review of its Diageo Chateau & Estate wine operations.

It follows the company’s announcement last month that it was selling and leasing back its Sterling Vineyards and Beaulieu Vineyards wineries in Napa Valley, along with about 2,000 acres of vineyards.

But the company said it still had a ‘long-term commitment’ to the wine business, pledging to continue to import fine wines to the US from France and other countries.

The move effectively signals Diageo’s exit from the Bordeaux wine business in the US, but the company will continue to deal in the region’s wines in other markets, through its Vignobles Internationaux SA (VISA) and Justerini & Brooks businesses.

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Written by Richard Woodard

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Richard Woodard
Richard Woodard
Decanter Magazine, Wine & Spirits Writer

Richard Woodard is a freelance wine and spirits writer based in the UK. Aside from Decanter, he writes for several wine trade and media outlets including Imbibe, The Drinks Business, Harpers and Drinks International.

Since 2015 he has been the magazine editor of Scotchwhisky.com. He has formerly worked as a wine news reporter at Imbibe and a feature writer for Halycon Magazine.