spirits

Sale of 19 spirits brands by Diageo to the Sazerac group

The British group Diageo has just sold 19 of its spirits brands to the American Sazerac for 550,000,000 dollars. The profits from this sale, approximately €488,000,000, will be reinvested in the purchase of shares.

With this transaction, the British group intends to refocus on its own higher-end brands, such as Jack Daniel’s whisky. A strategy that could prove to be profitable, and appears promising for the future of spirits.

Diageo is reviewing its strategy and its catalogue of labels. Indeed, Diageo’s brands were suffering losses of -10% per year.

Diageo is the largest company specialising in spirits and beer. It was created in 1997, following the merger of two groups: “Grand Metropolitan” and “Guiness”.

Sazerac Company Inc. is a private company owned by billionaire William Goldring. Specializing in alcoholic beverages, the group achieves annual sales of approximately $1 billion through its 300 brands.

The North American market for premium spirits is the largest in the world. One third of its profits are generated by the Diageo group, which owns Smirnoff or Guiness. In 2017, sales of spirits in the United States reached a record $26.2 billion. This success is due in part to the public’s enthusiasm for brown spirits (Bourbon type), tequila and vodka.

 

Don’t drink and drive. Enjoy responsibly.