Diageo has agreed the sale of Safari, a fruit-flavoured liqueur brand, to Casa Redondo, a Portuguese alcohol company. The British company stated that the transaction was in line with its strategy of maintaining a “sharp focus on effective portfolio management”.
Safari is predominantly sold in Benelux, Portugal and Turkey. Given its consumer base, Diageo said Casa Redondo was the right owner to take Safari into its next chapter of growth across Europe and beyond.
John Kennedy, Diageo’s President for Europe, commented: “This transaction will allow us to further concentrate on our core areas of strength, including tequila and whisk(e)y, as we accelerate towards our ambition to be one of the best performing, most trusted and respected consumer products companies in the world.”
Daniel and Ricardo Redondo, Chief Executive and Chief Financial Officer of Casa Redondo, added: “This transaction underscores our commitment to expanding our portfolio with premium offerings that resonate with consumers globally. We look forward to integrating this brand into our family, continuing to innovate for our customers, whilst ensuring exceptional quality.”
Earlier this year, it was reported that Diageo was working on plans to sell a trio of its non-core brands, including the popular summer drink Pimm’s. And last week, analysts labelled the drinks giant as a possible takeover target after its share price slid to the lowest level in four years.
NAM Implications:
- Diageo will benefit from shedding non-core brands.
- Safari will benefit from the extra attention of a new owner.
- Rivals might benefit from reassessing relative competitive appeal in the Safari category.
- Watch this space…
