Diageo, the UK-based drinks giant, has firmly denied recent media speculation suggesting it is considering selling its iconic Guinness brand or its 34% stake in Moët Hennessy, the luxury champagne and cognac producer.
In response to a Bloomberg report, Diageo released a statement on Sunday confirming it has “no intention to sell either” asset. The media reports had indicated that the company was reviewing its portfolio as part of efforts to revive growth, with some speculating that Guinness, valued at over $10 billion, could be sold or publicly listed.
While Guinness, traditionally an outlier in Diageo’s predominantly spirits-focused portfolio, has seen strong growth, particularly among younger consumers on social media, the company has opted not to pursue a sale. The brand’s recent popularity, including viral social media challenges such as “split the G,” has driven substantial demand, particularly over the festive season, despite occasional shortages in the UK.
A sale of the Guinness brand, alongside Diageo’s stake in Moët Hennessy, could have provided much-needed funds as the company navigates a challenging period. Diageo has faced cooling demand in key markets like China and the US, as well as inventory issues in Mexico and Brazil, prompting a profit warning in 2023. Spirit sales, particularly premium options, have also dipped as inflation affects consumer spending.
However, Guinness’ sales have been resilient, growing at double-digit rates since 2021. Diageo plans to release its half-year financial results on February 4, amid expectations that it may revise its growth targets.
Russell Trebor / Diageo HQ Coronation Road NW10 / CC BY-SA 2.0
