Diageo has agreed the sale of its wine interests in Argentina to Grupo Peñaflor
Diageo has agreed the sale of its wine interests in Argentina to Grupo Peñaflor. In addition, Peñaflor will be appointed as the distributor of Diageo’s international spirits brands and, after an interim period, will jointly produce with Diageo its domestic spirits brands across Argentina. The appointment of a dedicated distributor in Argentina will strengthen Diageo’s route to market and is expected to accelerate the performance of Diageo’s brands there. The transaction is expected to be completed early in 2016.
Sale proceeds, which are not material, have not been disclosed. The sale includes the Navarro Correas and San Telmo wine brands, together with production sites and vineyards. In the year ended 30 June 2015 net sales were £18.5 millon.
The transaction, which is eps neutral in the first full year following completion, will result in an exceptional loss before taxation of approximately £60 million upon completion.