Diageo sells Italian operations to New Prince amid global restructuring efforts
Deal marks a key step in Diageo’s strategy to optimize operations, cut fixed costs, and streamline its global production network.
ITALY – Global alcoholic beverage leader Diageo has announced the sale of its Italian subsidiary and production facilities to Italian food and beverage group New Prince, marking a significant move in its ongoing global restructuring plan.
The transaction includes the complete divestment of Diageo’s operating corporation and manufacturing assets located in Santa Vittoria d’Alba, in northwestern Italy.
The deal, which is still subject to regulatory approval, is expected to be finalized within the year. Financial details of the transaction have not been disclosed.
New Prince, formerly known as Newlat Food, will take over all 349 employees currently working at the site. Diageo has confirmed that production levels will be maintained under the new ownership, with ongoing commitments to product development.
The Italian facilities are responsible for the production of various beverages, including vodka, rum, and non-alcoholic drinks, although Diageo has not disclosed the exact brands involved.
New Prince has indicated that the acquired site will be used to produce a range of formats across both alcoholic and non-alcoholic segments, including ready-to-drink (RTD) products.
This sale forms part of Diageo’s broader initiative to optimize its global production network. The company stated that the move will improve service delivery and efficiency across its supply chain.
It follows earlier closures of production sites, including the UK-based Chase Distillery in January 2024 and a 160-year-old manufacturing facility in Hyderabad, India, in February.
Diageo also announced plans in 2023 to reduce its portfolio by divesting non-core brands such as Safari fruit liqueur and Pampero rum.
The company aims to save $500 million between 2024 and 2028 through reduced trade investments, advertising expenses, and supply chain costs.
Despite reporting a 1% year-on-year increase in revenue to US$10.9 billion for the July–December 2024 period, Diageo saw operating profit decline 5% to US$3.16 billion, missing analyst forecasts.
Net profit also dropped to US$1.94 billion from US$2.21 billion in the same period.
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