Diageo revokes agreement for sale of Windsor to South Korean consortium

London-based global alcoholic beverage company Diageo plc announced Tuesday it plans to revoke the domestic management rights of the Windsor whisky brand previously given to the Bayside Private Equity and Metis Private Equity (Bayside/Metis) consortium. 

Diageo operates from 132 sites around the world, mainly distributing Scotch whisky and other spirits. 

In March, Diageo agreed to the sale of the Windsor brand including the W series to Bayside/Metis for an aggregate consideration of 200 billion won ($140.7 million). Under the agreement, Diageo will supply Scotch whisky to the consortium for 10 years. 

The alcoholic beverage behemoth claimed the Bayside/Metis consortium failed to fulfill the stipulations laid out in the contract in full and that further details are hard to disclose. 

In South Korea, Diageo has two separate corporations, namely Diageo Korea and Windsor Global.

Following the split, the Windsor business in South Korea will be operated by Windsor Global, not Diageo Korea. 

Windsor is considered one of the top three whiskies in the world, along with GoldenBlue and Imperial. 

Industry insiders say it is unlikely for the company to pursue the Windsor business sale again in the foreseeable future. 

Write to Soo-Jung Ha at agatha77@hankyung.com
Jee Abbey Lee edited this article.