Diageo’s run of disposals continues, with the spirits giant today (8 September) announcing the sale of coffee-cream liqueur brand Sheridan’s.
Casa Redondo has snapped up Sheridan’s, the second time in just over 12 months the Portugal-based group has bought a Diageo brand.
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In July last year, Casa Redondo acquired Diageo’s fruit-flavoured liqueur brand Safari.
Like the Safari deal, the financial terms of the sale to Sheridan’s were not disclosed.
In a statement, Dayalan Nayager, the president of Diageo’s business in Europe and the group’s chief commercial officer, described the disposal as “another example of our sharp focus on effective portfolio management and maximising shareholder value”.
As well as Safari, Diageo has offloaded rum brands Cacique and Pampero in the last 14 months.
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By GlobalDataNayager added: “We continue to focus on our core areas of strength to accelerate towards our ambition; to create one of the best-performing, most trusted and respected consumer products companies in the world.”
In a statement, Daniel Redondo, the CEO of Casa Redondo, called Sheridan’s “a unique brand with strong consumer recognition and an enduring identity”.
He added: “Bringing it into our portfolio represents a pivotal moment for Casa Redondo. This acquisition strengthens our international presence and reflects our ambition to build an increasingly global business.”
In the statement announcing the deal, Diageo said Sheridan’s was “a global brand available in over 50 countries” and is “widely distributed across Europe”.
In May, then Diageo CFO Nik Jhangiani said the Guinness owner could make “substantial changes” to its product portfolio in the form of asset disposals.
Jhangiani was speaking after Diageo announced plans to save around $500m in costs over the next three years.
Since then, Jhangiani has been installed as interim CEO after the departure of Debra Crew in July.
Last month, Diageo upped its cost-savings target to $625m. Jhangiani said the efforts were “not just about cutting costs” but would also see the company “driving better growth, prioritising where we invest and building stronger capabilities”.
In the year to the end of June, the group’s reported net sales fell 0.1% to $20.25bn but rose 1.7% organically.
Diageo’s reported operating profit declined 27.8%, reaching $4.34bn, amid impairment charges, restructuring costs and unfavourable exchange rates.
Operating profit before exceptional items dipped 0.7% to $5.71bn.
Reported net profit slid 39.1% to $2.54bn.
Three weeks ago, the company announced the sale of two Australian ready-to-drink brands to local drinks group Vok Beverages.
In July, Bloomberg reported Diageo had selected Bank of America and Goldman Sachs to carry out a review of its East African Breweries business.
Diageo, Bank of America and Goldman Sachs declined to comment on the story when approached at the time by Just Drinks.
Last week, Diageo set out plans to shut its Crown Royal whisky bottling facility in Canada next year, sparking an angry public reaction from Ontario premier Doug Ford.
