Newlat Food to acquire Diageo plant in northern Italy, pledges to retain all employees

Newlat Food, an Italian food group, announced on Tuesday that it has signed an exclusive agreement to acquire a production plant in northern Italy from Diageo, the world’s largest spirits producer. The facility is located in Santa Vittoria d’Alba, in the Piedmont region. This move follows Diageo’s decision in December to close the plant, which produces a variety of alcoholic beverages, ready-to-drink products, and low- and no-alcohol drinks.

The Italian industry ministry confirmed late Monday that Newlat had submitted a binding offer for the factory. As part of the proposal, Newlat pledged to retain all 349 employees currently working at the site, maintain existing production levels, and invest in product development. The ministry highlighted these commitments as key factors in supporting local employment and industrial activity.

Angelo Mastrolia, Chairman and CEO of Newlat Food, told Reuters that the financial terms of the agreement remain confidential for now but will be disclosed once the deal is finalized. Diageo also declined to provide details about the transaction value.

In its statement, Newlat said acquiring the Santa Vittoria d’Alba plant would help strengthen its position in the beverage sector. The company aims to expand its presence in both spirits and non-alcoholic drinks, with a particular focus on private label and business-to-business markets. Mastrolia described the facility as “best in class” and emphasized its strategic importance for Newlat’s growth plans.

This acquisition comes as Newlat prepares to rebrand itself as NewPrinces. The name change follows its purchase last year of British food company Princes, known for tinned fish and Napolina sauces, in a deal valued at nearly 700 million pounds (about $924 million).

The agreement between Newlat and Diageo is expected to secure jobs and sustain production in a region known for its food and beverage industry. The deal also reflects ongoing changes in global supply chains as companies adjust their portfolios and seek new opportunities for expansion.