Diageo sells 19 brands to Sazerac, including Seagram‘s

It’s a 550 Million Dollar Deal

No, this article is not about Johnnie Walker, Talisker, Lagavulin or other famous Scottish premium whisky brands of Diageo. But the Canadian whiskey Seagram’s is probably also well-known to most of the whisky fans and it is part of a list Sazerac and Diageo published today.

19 brands are listed in a press release that announces a 550-million-dollar deal between the two companies Diageo and Sazerac. Diageo sells some whiskey brands as well as rum, gin, tequila, liqueurs and mixer brands. In detail those are Seagram’s VO, Seagram’s 83, Seagram’s Five Star, Myers’s, Parrot Bay, Romana Sambuca, Popov, Yukon Jack, Goldschlager, Stirrings, The Club, Scoresby, Black Haus, Peligroso, Relska, Grind, Piehole, Booth’s and John Begg.

Net proceeds of about £340 mio will be returned to the shareholders of the British company Diageo. The transaction is planned to be complete in early 2019. It also includes contracts for long term supply for five of those brands, lasting for a period of 10 years. For the other brands their will be a guaranteed supply for one year after the transition will have been completed.

With this sale Diageo follows its course to concentrate on the core portfolio and the fast-growing premium brands.

The transfer hasn’t been a total surprise for the stock market and shareholders: Already in May 2018 news were published (for example here at Skye News) about Diageo’s plans to sell some brands like Goldschlager, Myers’s, Popov and Romana. Seagram’s, however, wasn’t mentioned at that time.