Diageo has announced that it has completed the sale of its major wine brands, including US based Chateau and Estate Wines and the UK based Percy Fox business to Treasury Wine Estates.

The acquisition was agreed in October last year, after Diageo decided that it would be shifting its focus from wine to give more attention to the core brands within its portfolio.

“With the completion of this transaction, Diageo will have released £1 billion from the sale of non-core assets since the start of the financial year”, Chief Executive of the company, Ivan Menezes said back in October. “This proactive portfolio approach has focused the business, enhanced our financial strength, improved our returns and strengthened the business, positioning us even more firmly to deliver our performance ambition.”

TWE has also acquired the well-known Beaulieu Vineyards, Sterling Vineyards, Acacia, Provenance and Hewitt in the US from the sale, as well as the UK’s leading Blossom Hill wine brand. The company has said that is will be using the new assets to leverage its existing portfolios, including its Luxury and Masstige portfolio in the US and Commercial portfolio globally.

TWE also told drinks bulletin this week that it will be providing plans for the newly acquired brands as part of our H1 results in February.