Diageo sells sherry and port brands

Diageo has sold its Croft and Delaforce brands to Gonzalez Byass and Taylor Fonseca for £52m.

The company said the sherry and port brands did not fit with its strategy of focusing on premium spirit brands. However, it has retained the right to market Croft brandy.

Gonzalez Byass, the maker of Tio Pepe sherry, has bought the Croft sherry brand, while Taylor Fonseca has bought the Croft and Delaforce port brands.

Diageo is waiting to hear whether the US Federal Trade Commission will allow its joint purchase with Pernod Ricard of the Seagram drinks businesses.

If the sale goes ahead Diageo and Pernod Ricard have said they will sell Sandeman, the port and sherry maker owned by Seagram.

Diageo is to report its full-year results on Thursday and is expected to have made profits of about £2bn before tax, exceptionals and goodwill amortisation.

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