Diageo sells its Bordeaux wine business

21 July, 2010

As part of a previously-announced review of its wine operations, Diageo Chateau & Estate Wines has announced that it has sold its Barton & Guestier Bordeaux business to French Wine concern Castel Freres SAS. The sale includes brands, inventory and land, including Chateau Magnol.  The terms of the transaction were not disclosed.

In May, Diageo announced a full review of its US wines business with the goal of focusing on “core strategic brands” like Beaulieu Vineyard wines, Sterling Vineyards, Chalone, Acacia, Rosenblum Cellars and Provenance.

In addition to its US wine brands, DC&E will continue to import wines to the US.

Sandra LeDrew, president, sales & marketing, DC&E said: “DC&E remains committed to our French Agency business and our dedicated Diageo distributor network across the country will continue to handle these wines as we have done with pride and success for many years.”

In markets outside the US, Diageo Wines Europe will continue to grow its involvement in Bordeaux wines through separate businesses -- Vignobles Internationaux SA (VISA) and Justerini & Brooks Ltd.  Bordeaux-based VISA will continue to market Bordeaux wines, concentrating on merchants and importers in Europe and Asia.  London-based merchant Justerini & Brooks continues to develop its sales of Bordeaux wines within its fine wine portfolio with private individuals and premium hotels and restaurants, including a continuing commitment to en primeur.

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