The Italian food firm, which is set to change its name to NewPrinces following its £700 million deal for Princes last year, announced on 13 May that it is set to acquire Diageo’s only production facility in Italy, which is located in Santa Vittoria d’Alba.
Diageo had previously announced plans to shutter the factory where around 350 people are employed, but confirmed this week that it was in talks with Newlat about a deal.
“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,” a Diageo spokesperson told Food Manufacture.
“Any material developments will be disclosed to the market in accordance with the relevant legal and regulatory requirements.”
Newlat has said that the acquisition will allow it to strengthen its offering in the drinks category, where it currently generates more than €350 million in revenue in the UK.
The facility in Northern Italy has been used in the production of a wide range of alcoholic beverages, ready-to-drink products and low and no alcohol products.
Employing close to 9,000 people, Newlat specialises in a range of products and owns brands including Napolina, Naked and Delverde.
The impending sale represents the latest move by Diageo to divest from non-essential parts of its portfolio.
Earlier this year the drinks firm – which owns brands such as Guinness, Smirnoff and Captain Morgan – completed the sale of its Guinness Ghana shareholding, while it closed the Chase Distillery in Hereford.
However, it was forced to abandon its attempt to find a buyer for the Pimm’s brand after several months of searching.
During its 2024 fiscal year, Diageo saw organic operating profit decline by $304 million, with much of the decline the result of its poor performance in the Latin America and Caribbean region.
