Diageo plans to sell 19 brands, focus on premium spirits

The owner of Johnnie Walker whiskey and Don Julio tequila is making a splash in the liquor industry with a large deal announced Monday.

The London-based firm Diageo will selli a 19-brand portfolio to alcoholic beverage company Sazerac for $550 million. Some of the brands that Diageo will shed are Goldschläger schnapps, Seagram's VO blended whiskey and Yukon Jack whiskey liqueur.

"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,” Diageo CEO Ivan Menezes said in a statement. 

The move is part of a "strategy to deliver consistent efficient growth and value creation" for shareholders, he said.

Diageo, which also owns brewing company Guinness, has previously made large portfolio sales. In 2015, the company announced it would be selling most of its U.S. and U.K. wine operations to Australia-based Treasury Wine Estates.  

The company has also recently made large purchases. Last year, Diageo bought Geerge Clooney's Casamigos tequila company for around $1 billion. 

Diageo's deal with Sazerac is expected to complete early in 2019. 

Follow USA TODAY intern Ben Tobin on Twitter: @TobinBen