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		</div><p>Drinks giant Diageo is offloading 19 brands including Parrot Bay rum to US firm Sazerac in a deal worth 550 million US dollars (€485m).</p>
<p>Diageo &#8211; which counts Smirnoff, Johnnie Walker and Guinness among its leading brands &#8211; said the move will allow it to concentrate on its premium US spirits.</p>
<p>The brands being sold in the deal are: Seagram&#8217;s VO, Seagram&#8217;s 83, Seagram&#8217;s Five Star, Myers&#8217;s, Parrot Bay, Romana Sambuca, Popov, Yukon Jack, Goldschlager, Stirrings, The Club, Scoresby, Black Haus, Peligroso, Relska, Grind, Piehole, Booth&#8217;s and John Begg.</p>
<p>Diageo also said it has entered into 10-year supply contracts with Sazerac for five of the drinks being sold. Proceeds of the deal &#8211; expected to be about €389m on a net basis &#8211; will be returned to investors through a share buyback. It is hoping to complete the sale early next year.</p>
<p>Ivan Menezes, chief executive of Diageo, said: &#8220;The disposal of these brands enables us to have even greater focus on the faster growing premium and above brands in the US spirits portfolio.&#8221;<br />
The US accounts for around 45% of Diageo&#8217;s group profits.</p>
<p>Edward Munday at Jefferies International said the sale was &#8220;further evidence of the Diageo change story&#8221;.<br />
He added the deal would boost growth in Diageo&#8217;s US spirits division.</p>
<p>Diageo warned in September over &#8220;volatility&#8221; in some of its markets, with full-year profits expected to take a £45 million hit due to currency fluctuations. But it said at the time that trading for the year had &#8220;started well&#8221; and that performance was still in line with expectations.</p>
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