Diageo Dismisses Rumors of £8B Guinness Sale

Diageo has firmly rejected rumors suggesting the sale of its iconic Guinness brand for over £8bn. The alcohol giant, which also owns prominent brands like Baileys, Johnnie Walker, and Smirnoff, was reportedly considering the sale, as per a Bloomberg report. However, in an official statement issued on Sunday, Diageo addressed the speculation, confirming, “We note the recent media speculation around the Guinness brand and our stake in Moët Hennessy and we can confirm we have no intention to sell either.”

The potential sale would have come at a time of growing demand for stout, with Guinness experiencing supply shortages during the Christmas period. The popularity of stout has surged in recent years, driven by increasing interest among younger consumers and women, fueled by a trend toward drinks with lower alcohol content.

If Diageo were to sell the Guinness brand, it was expected to fetch more than £8bn, a significant sum that could have provided a financial boost to the company, which has faced challenges in recent years. Despite these hurdles, Diageo CEO Debra Crew praised the company for its resilience. Last year, Diageo’s shares hit a seven-year low, following a dip in its half-year sales by 1.4%, totalling £15.7bn.

Crew emphasized Diageo’s long-term growth strategy, saying, “Diageo is a resilient business, benefitting from its global reach and unrivalled brand portfolio. We take a long-term view, and will continue to invest in our brands, people, and diversified footprint to deliver sustainable long-term growth and generate shareholder value.”

In line with its strategy of focusing on core strengths, Diageo sold its Pampero rum and Safari fruit liqueur brands last year. The company also quietly abandoned the planned sale of Pimm’s after failing to agree on terms with bidders, despite having engaged Rothschild bankers to explore the sale earlier.