Italy’s Newlat Food is making a strategic leap in the beverage sector with the acquisition of a production facility in Santa Vittoria d'Alba, Piedmont, from global spirits giant Diageo.
The exclusive agreement, announced Tuesday, marks a significant development for both companies and for Italy’s industrial landscape.
Diageo had initially declared plans to shut down the plant in December, a move that raised concerns over job losses and industrial continuity in the region. However, Newlat stepped in with a binding offer, backed by strong commitments: retaining all 349 workers, maintaining existing production levels, and continuing to develop new products at the facility. These assurances were confirmed in a separate statement by Italy’s industry ministry.
While the financial terms of the deal remain undisclosed due to confidentiality clauses, Newlat Chairman and CEO Angelo Mastrolia told Reuters that full details would be revealed once the transaction is finalized.
The acquisition aligns with Newlat’s long-term ambitions to strengthen its footprint in the drinks industry. According to the company’s statement, the Santa Vittoria d'Alba plant—described as “best in class”—produces a broad range of alcoholic beverages, ready-to-drink (RTD) cocktails, and low- and no-alcohol products. These capabilities will enhance Newlat’s product offerings, particularly in private label manufacturing and B2B sectors.
“The deal allows us to complete and strengthen our offering in the drinks category,” Mastrolia said. “This plant represents a key strategic asset for our expansion into both the alcoholic and non-alcoholic beverage markets.”
The acquisition comes at a time when Newlat is undergoing a broader transformation. Following its high-profile GBP 700 million (USD 924 million) purchase of UK-based Princes Group in 2023—a company known for its tinned foods and Napolina sauces—Newlat is preparing to rebrand itself as NewPrinces. The move reflects its evolving identity as a diversified European food and beverage conglomerate.
This latest deal also signals a broader industrial shift, with Newlat assuming control of a facility once owned by the world’s largest spirits producer. It underscores Italy’s commitment to preserving industrial jobs and production capacity while allowing innovative players like Newlat to reinvigorate legacy assets.
As global markets shift toward healthier drinking trends and increased demand for private label beverages, Newlat's newly acquired facility positions the company to compete more effectively. With the plant’s production versatility and workforce intact, the deal is a win for both local stakeholders and Newlat’s ambitions to scale further in the European beverage space.
Source: Reuters