Diageo does not intend to sell its beer brand Guinness or its stake in Moët Hennessy, LVMH's drinks unit, the world's top spirits makers has said.
On Friday, Bloomberg News reported that the company was exploring options for Guinness, a star performer in Diageo's portfolio, as well as reviewing its investment in Moët Hennessy. The report said that Guinness could be valued at more than $10 billion.
'We note the recent media speculation around the Guinness brand and our stake in Moet Hennessy and we can confirm that we have no intention to sell either,' Diageo said in a statement.
The company also said that it would provide further updates on its business with interim results on 4 February.
Business Focus
Guinness is an outlier in Diageo's business, which consists mostly of spirits rather than beer, but its performance recently has outshone that of key liquor labels, such as Johnnie Walker whisky.
Spirits sales have struggled after a post-pandemic boom in demand for more expensive liquor went into reverse. Meanwhile, Guinness sales have grown by double digits every year since 2021, with its zero-alcohol version also surging.
Eariler this month, Britain's Terry Smith made public for the first time why his fund dumped its Diageo stake last year, citing problems with its new management and early signs that weight loss drugs threatened the drinks sector.
Smith, who has a loyal following among British retail shareholders, explained his rationale for offloading Diageo for the first time in his annual letter to investors.
