Diageo sells Argentina wine business

Diageo Plc, the world's largest spirits company, said yesterday it had sold its wine interests in Argentina to Grupo Peñaflor for an undisclosed amount.

The sale includes the Navarro Correas and San Telmo wine brands along with production sites and vineyards, Diageo said. Diageo, the maker of Smirnoff vodka, Guinness beer and Johnnie Walker whisky, said Peñaflor would also distribute its international spirits brands across the region. Diageo said is expects to record an exceptional pre-tax loss of about 60 million pounds ($91.40 million) once the deal is completed, as expected, early next year.