24th Jan 2025 16:27
(Alliance News) - Diageo PLC is considering spinning off or selling its historic Guinness beer business, according to a Bloomberg report.
Bloomberg News reported on Friday that the drinks firm is also reviewing the future of its 34% stake in Moet Hennessy, the drinks division of luxury firm LVMH Moet Hennessy Louis Vuitton SE.
It comes amid a testing period for Diageo boss Debra Crew, who has seen the company's shares steadily decline under her leadership over the past year-and-a-half.
In November, Diageo shares hit their lowest level since 2017.
The company has already reportedly looked at the potential sale of its Pimms liqueur and Ciroc vodka brands over the past year.
The fresh reports said people familiar with the matter said a potential spin-off or sale of Guinness is being studied among a range of possibilities.
Bloomberg reported that the Irish stout business could be valued north of USD10 billion, if it looked at a possible stock market listing or gauged possible takeover interest.
Guinness has been a key area of growth for the London-listed group in recent years, with the stout becoming the UK's most popular beer in 2022, after overtaking Carling lager.
In July, the company said strong sales of Guinness, particularly in the UK, helped to drive an 18% rise in beer sales across the company.
It came as the group revealed total sales dropped for the first time in around four years, amid weaker demand for scotch and rum.
Diageo has been contacted for comment.
Shares rose 4.2% to 2,501.50 pence shortly before the closing bell in London.
By Henry Saker-Clark, PA Deputy Business Editor
source: PA
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