Diageo Sells Barton & Guestier
The move follows a recent statement that the international conglomerate is conducting a full review of its wine operations.
Published on Jul 21, 2010
BY STEVE HEIMOFF
Diageo, the world's largest beer, wine and spirits company, announced July 20 that it has sold its Barton & Guestier company to a French firm.
Earlier this month, the London-based company sold off the land and property of two of its flagship Cailfornia wineries, Beaulieu and Sterling, to a southern California company.
The terms of the B&G transaction, which unlike the California deal includes brands and inventory as well as land, were not disclosed. B&G produces a wide range of wines from France’s Bordeaux, Loire Valley, Beaujolais, Burgundy and Rhône Valley regions.
The two moves follow Diageo’s statement, in May, that it was conducting a full review of its wine operations.
Shares of Diageo rose 18% on news of the announcement, but remain off last April’s highs.
Last week the company announced a U.S. management reshuffle it said would “continue to drive breakthrough growth...for Diageo's North America sales teams.”
In its home country, England, Diageo has been struggling with a huge deficit in its pension plan. The New York Times reported the company planned to put aside two million barrels of whiskey in order to securitize a $645 million hole in the pension fund.