Diageo has lined up the divestment of a production facility in Italy for an undisclosed fee.
The transaction, with domestic food and drink company NewPrinces, sees the Johnnie Walker brand owner hand over the Santa Vittoria site to the group, which was formerly known as Newlat Food. Diageo positioned the sale as aligning with its “ongoing commitment to optimising its global production network to better serve its markets”.
NewPrinces initially signed an exclusivity agreement for the purchase of the facility in the north-west of the country last month. Employees will continue to work at the site, Diageo said, while a fixed term service agreement will be in place post-completion.
Information on which brands were produced at the site was not immediately available.
Last week, Diageo’s regional unit in India acquired a further stake in the owner of the domestically-produced craft gin brands, Greater Than and Hapusā. The group’s national division initially purchased 22.5% of the business just over three years ago for INR315m (then-US$4.1m).
