India wine biz cost Diageo loss of 2 mn pounds

Diageo-owned liquor firm United Spirits Ltd (USL) had sold its entire equity stake in Four Seasons Wines as well as associated brands to Grover Zampa Vineyards and Quintela Assets for Rs 31.86 crore. “The disposal of the Indian wine business has resulted in an exceptional loss of 2 million pounds,” Diageo said in its Annual Report 2020.

Talking about consumption preferences, Diageo said consumers who drink alcohol are increasingly choosing spirits over beer and wine.

“This is a long-term trend. In markets where spirits is a less mature category, mainstream spirits brands can offer quality and affordability. In more mature markets, premium core and reserve brands offer choice and new experiences,” it said.

In January 2019, United Spirits had entered into an agreement for the sale of all the equity shares held by the company constituting 100 pc of the paid up equity share capital of its wholly-owned subsidiary, Four Seasons Wines, along with the brands. Total consideration for this sale was Rs 31.86 cr. USL had said this disinvestment was in line with its strategy to continue to monetise its non-core assets, including subsidiaries.