Diageo names new Argentina spirits distributor

Diageo has appointed Grupo Peñaflor as exclusive distributor and joint producer of its spirits brands in Argentina.

Grupo Peñaflor, the biggest Argentine wine producer and distributor, is to handle Diageo’s international spirits brands in the market

The appointment comes after Diageo sold its entire Argentina wine business to Grupo Peñaflor as the group continues to strengthen its focus on spirits.

The sale includes the Navarro Correas and San Telmo wine brands, together with production sites and vineyards.

As part of the deal, Peñaflor will distribute Diageo’s international spirits brands in Argentina, and “after an interim period” will jointly produce the group’s local spirits labels in the country.

“The appointment of a dedicated distributor in Argentina will strengthen Diageo’s route to market and is expected to accelerate the performance of Diageo’s brands there,” Diageo said in a statement.

The deal, which will result in an exceptional loss before taxation of approximately £60 million, is expected to be completed by early 2016.

In its full-year financial results for 2014/15, Diageo said that while net sales were down, its local brands increased share gains.