Treasury Wine Estates to consider Diageo’s Sterling Vineyards division

Treasury Wine Estates, owner of Penfolds, Wolf Blass and Rosemount, may look closely at buying the Sterling Vineyards wine brand in California but is likely to steer clear of other lower-end brands that British alcoholic drinks giant Diageo is putting up for sale. Diageo, which has a market capitalisation of $43 billion, makes most of its profits from its spirits portfolio which is led by Johnnie Walker, Smirnoff Vodka, Captain Morgan rum and Tanqueray gin, while in the beer category it also sells the Guinness brand.