Diageo to sell Italian plant to Newlat Food
Newlat Food has agreed to acquire Diageo’s sole production facility in Italy, which could save more than 300 jobs.
Italian company Newlat Food, which operates in the dairy, pasta and bakery sectors, announced it had signed an agreement this week (13 May) to buy Diageo’s production site, which is located in Santa Vittoria d’Alba, Piedmont.
Newlat confirmed that the plan includes the protection of all 349 workers currently employed in the Piedmont plant through the maintenance of production and the introduction of new products.
Newlat said the proposed deal would enable the company to “complete and strengthen its offering in the drinks category” – a sector where it already generates more than €350 million (US$392m) in revenue in the UK.
The facility is said to have ‘extensive experience’ in the production of a wide range of alcoholic beverages, ready-to-drink (RTD) products and no- and low-alcohol drinks.
Headquartered in Reggio Emilia, Newlat purchased Princes, one of the UK’s largest food and drink groups, for £700m (US$930m) last year.
A Diageo spokesperson said: “In response to media reporting, Diageo and the New Princes 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.
“Any material developments will be disclosed to the market in accordance with the relevant legal and regulatory requirements.”
Diageo did not confirm what products are made at its Italian site, but its 2024 annual report noted that the company makes vodka, rum, RTDs and non-alcoholic drinks in the country.
It is not yet known whether Newlat will maintain production of Diageo’s products at the site through the proposed deal.
In 2019, Diageo opened a €420,000 (US$469,000) distillery in Santa Vittoria, Italy, and added a super-premium gin to its Reserve portfolio – Villa Ascenti. The Italian gin was made with local ingredients from Piedmont, and a second expression, Rosa, joined the range in 2020.
Last year, the group also unveiled Venturo, a ‘new-to-world’ blue apéritif produced in Italy. Made with Sicilian lemons, blue chamomile, rosemary, and sea salt, Venturo was exclusive to the Italian market.
London-headquartered Diageo operates production sites in the UK (including 30 in Scotland), Ireland, Mexico, Italy, and Guatemala.
The group’s sales in Europe rose by 1% in the last six months of 2024, however Southern Europe was down by 6% and Northern Europe declined by 10%.
Divestments and closures
In January 2025, Diageo closed Chase Distillery and moved production to Scotland due to “substantial change” in the vodka and gin categories.
A month later, the Indian arm of Diageo announced it would shut its 160-year-old manufacturing facility in Hyderabad, Telangana, due to ‘evolving market dynamics and ageing infrastructure’.
The company has made a number of divestments in the past 12 months including the sales of Pampero rum, Cacique rum and Safari liqueur.
Diageo also recently pulled its investment from Distill Ventures, which has resulted in job losses.
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