Diageo has no plans to sell Guinness and stake in Moët Hennessy
Diageo has said it has no plans to sell its outperforming Guinness brand and stake in Moët Hennessy, despite widespread reports earlier this week.
In a statement to markets, the drinks company confirmed on Sunday “we have no intention to sell either.”
Diageo shares soared to the top of the FTSE 100 on Friday after Bloomberg reported it was looking to sell or list its famous beer brand.
Such a deal would be worth up to £8bn and come after booming Guinness sales resulted in shortages at many pubs over Christmas.
Bloomberg had reported the deal aimed at reviving the company’s fortunes following a difficult couple of years.
Shares are down over 12 per cent in the last twelve months and have performed poorly since chief executive Debra Crew took over in 2023 and issued a profit warning after only two months in the top job.
Diageo’s portfolio consists mainly of spirits. Sales of spirits have faltered following a reversal of a post-pandemic boom in demand for expensive liquors.
High inflation and raised interest rates have also placed significant pressure on consumers in recent years, hitting pubs up and down the country.