Diageo Chateau & Estate Wines Announces Sale of Barton & Guestier

US Wine Business Sells Wine Brand to French Wine Concern Castel Freres SAS

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Jul 20, 2010, 04:02 ET

NAPA, Calif., July 20 /PRNewswire-FirstCall/ -- As part of a previously-announced review of its wine operations, Diageo Chateau & Estate Wines announced today that it has sold its Barton & Guestier Bordeaux business to French Wine concern Castel Freres SAS. The sale includes brands, inventory and land, including Chateau Magnol. The terms of the transaction were not disclosed.

In May, Diageo announced that it was taking a full review of its US wines business with the goal of focusing on core strategic brands like Beaulieu Vineyard wines, Sterling Vineyards, Chalone, Acacia, Rosenblum Cellars and Provenance, and ensuring Diageo's long-term commitment to the wine business.

In addition to its acclaimed US wine brands, DC&E will continue to import many fine wines to the US from France and other countries and remains strongly committed to its existing portfolio of French wines from Burgundy and Alsace.

"DC&E remains committed to our French Agency business and our dedicated Diageo distributor network across the country will continue to handle these wines as we have done with pride and success for many years," said Sandra LeDrew, President, Sales & Marketing, DC&E.

In markets outside the US, Diageo Wines Europe will continue to grow its involvement in Bordeaux wines through the separate but complementary businesses -- Vignobles Internationaux SA (VISA) and Justerini & Brooks Ltd. Bordeaux-based VISA will continue to market and commercialize Bordeaux wines, concentrating on key merchants and importers in Europe and Asia. London-based merchant Justerini & Brooks continues to develop its sales of Bordeaux wines within its fine wine portfolio with private individuals and premium hotels and restaurants, including a continuing commitment to en primeur.

About Diageo

Diageo (Dee-AH-Gee-O) is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, wines and beer categories. These brands include Johnnie Walker, Guinness, Smirnoff, J&B, Baileys, Cuervo, Tanqueray, Captain Morgan, Crown Royal, Beaulieu Vineyard and Sterling Vineyards wines.

Diageo is a global company, trading in more than 180 countries around the world. The company is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE).

For more information about Diageo, its people, brands, and performance, visit us at Diageo.com. For our global resource that promotes responsible drinking through the sharing of best practice tools, information and initiatives, visit DRINKiQ.com.

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SOURCE Diageo