The Italian food company is poised to rebrand itself as NewPrinces following its significant £700 million acquisition of Princes last year. On May 13, it announced plans to acquire Diageo’s sole production facility in Italy, which is situated in Santa Vittoria d’Alba.
Previously, Diageo had announced intentions to close the Santa Vittoria plant, which employs approximately 350 workers. However, recent updates reveal that Diageo is now engaged in discussions with Newlat regarding the potential sale of this facility.
“In response to media reporting, Diageo and the NewPrinces Group, formerly known as Newlat Food, confirm they are in early stage conversations regarding the potential purchase of the Santa Vittoria site currently owned by Diageo,” stated a Diageo spokesperson to Food Manufacture.
Furthermore, the spokesperson emphasized that, “Any material developments will be disclosed to the market in accordance with the relevant legal and regulatory requirements.”
Strengthening the Beverage Portfolio
Newlat aims to leverage this acquisition to enhance its presence in the drinks category, a sector that already generates over €350 million in revenue within the UK market. The Santa Vittoria facility has a rich track record, having produced a diverse array of alcoholic beverages, ready-to-drink items, and low- or no-alcohol products.
With a workforce of nearly 9,000 employees, Newlat’s product portfolio includes well-known brands such as Napolina, Naked, and Delverde. This impending sale marks yet another step for Diageo in its strategy to divest non-core assets.
Recent Developments at Diageo
Earlier this year, Diageo, known for its iconic brands like Guinness, Smirnoff, and Captain Morgan, successfully completed the sale of its Guinness Ghana shareholding and also closed the Chase Distillery in Hereford. However, the company faced challenges when it had to **abandon its attempts to sell the Pimm’s brand** after extensive searching yielded no buyers.
Additionally, during the 2024 fiscal year, Diageo reported an organic operating profit decline of $304 million, significantly attributed to its underperformance in the Latin America and Caribbean regions.
