Beleaguered Japanese dairy products company Snow Brand Milk Products Co. announced today [Tuesday] that it would sell its wine-making subsidiary.

The subsidiary is based in Yamanashi Prefecture, west of Tokyo. It will be acquired by a local confectionery producer for some ¥400m (US$3.3m).

The transaction involves 176,000 shares in the wine unit, as well as its fixed assets.

Snow Brand reported it would have to book some ¥700m in a one-off charge on the deal. The group confirmed that the loss had been taken into account in its earnings estimate for its current business year which ends next March, reported the Jiji Press.