Late yesterday, Diageo announced the divestment of part of its wine operations to Australia-based Treasury Wine Estates (TWE). Here, we take a closer look at what the deal includes:

  • Wine sales account for around 4% of Diageo's annual group sales - or around GBP430m (US$660m)  - according to Deutsche Bank
  • In the UK, TWE has taken ownership of Californian brand Blossom Hill. According to The IWSR, Blossom Hill is the number two wine brand in the UK, with sales of 5.3m cases per year. The number one spot belongs to TWE's Australian rival, Accolade Wines, with its Hardys brand
  • Blossom Hill's range includes whites, reds, rosés and lower-alcohol variants as well as sparkling Moscato and sparkling rosé
  • In July last year, Diageo rolled out a GBP2.1m advertising push for the brand in the UK to highlight its lighter, sun-kissed range
  • The Piat d'Or brand, which is also included in the sale, was launched simultaneously in the UK, Canada and Japan in 1979
  • Bottled in Italy, the French brand's range includes a red, a white and a rosé as well as some varietal expressions. Diageo launched a Sauvignon Blanc variant in 2010, to capitalise on the thirst for the grape variety
  • The sale of US-based Chateau & Estate Wines division includes Beaulieu Vineyards, Sterling Vineyards, Provenance and Hewitt, as well as the Acacia brand
  • The wineries are all in California: Beaulieu Vineyards in Rutherford, Sterling Vineyards in Calistoga, Provenance in Rutherford and Hewitt in Rutherford
  • The sale of Acacia involves the brand only, with Diageo retaining the vineyard and winery
  •  The UK's Percy Fox is a wine wholesaler and distributor