Diageo sells 19 non-strategic brands to Sazerac

With the aim of strengthening its position in the premium segment, UK-based spirits giant Diageo has agreed the sale of 19 non-strategic brands to the New Orleans-based distillery Sazerac for a consideration of $550 million.

The brands involved include Seagram’s and Yukon Jack whisky, Myers’s and Parrot Bay rum, Romana Sambuca and Goldschlager liqueurs and Popov vodka.

The deal will enable Sazerac to expand its portfolio, which includes brands such as Blanton’s and Buffalo Trace bourbons, Paddy Irish whiskey and above all the famous Southern Comfort liqueur.

The transaction, which is subject to regulatory approval, is expected to be completed in early 2019.