Diageo’s USL sells equity in FSWL

United Spirits (USL) has executed a share purchase agreement for the sale of its entire equity share capital in wholly-owned subsidiary Four Seasons Wines (FSWL) and associated brands to Grover Zampa Vineyards and Quintela Assets.

USL is an Indian subsidiary of British multinational alcoholic beverages company Diageo.

Established in 2006, FSWL is based in Bangalore and produces red, white and rosé wines from grapes cultivated in Sahyadri valley, Maharashtra. FSWL markets its wines under the Zinzi and Four Seasons brands.

Diageo India executive director and chief financial officer Sanjeev Churiwala said: “This deal brings us a step closer to the structural rationalisation and simplification of our India business.

“The FSWL wine business is a niche but a small part of the overall Diageo India portfolio and the sale will enable us to focus on our premiumisation strategy and grow our core Spirits business in India.”

As a result of the deal, FSWL will no longer be a subsidiary of USL. The move to divest FSWL is reported to be in line with USL’s strategy to successfully continue to monetise its non-core assets.

Last December, Diageo entered an agreement with Delta Corporation to sell sorghum beer business United National Breweries (UNB) in South Africa.

Headquartered in Midrand, UNB produces and offers a wide range of beer, including Chibuku, Tlokwe and Joburg.

In November last year, Diageo agreed to sell 19 brands to US-based distiller Sazerac for an aggregate consideration of $550m.

The brands involved in the transaction consist of Seagram’s VO, Seagram’s 83, Seagram’s Five Star, Myers’s, Parrot Bay, Romana Sambuca and Popov, as well as Yukon Jack, Goldschlager, Stirrings and The Club.

Other brands included in the deal are Scoresby, Black Haus, Peligroso, Relska, Grind, Piehole, Booth’s and John Begg.