Diageo Considers Selling Iconic Guinness Brand Amid Portfolio Review

2025-01-25

Diageo, the global drinks giant, is reportedly considering the sale or spin-off of its iconic Guinness brand, which could be valued at over £8 billion ($10 billion). The move comes as part of a broader review of its portfolio under CEO Debra Crew, who is seeking to revive growth amid challenging market conditions. The company is also evaluating its 34% stake in LVMH’s Moët Hennessy division, with options including increasing its ownership or exiting the venture entirely.

Guinness has been a standout performer for Diageo, particularly among younger consumers, with its popularity soaring among Gen Z drinkers. The brand’s non-alcoholic version, Guinness 0.0, has also seen significant success, contributing to its strong sales growth. However, the stout’s success contrasts with Diageo’s broader struggles, including declining demand for spirits in key markets like the US and China, and a recent profit warning that sent its shares to their lowest level since 2017.

The potential sale of Guinness has sparked mixed reactions. While some analysts question the logic of divesting a high-performing asset, others suggest it could be a strategic move to focus on Diageo’s core spirits business, which includes brands like Johnnie Walker and Tanqueray. The company has already been exploring the sale of other underperforming brands, such as Cîroc vodka and Pimm’s.

Diageo’s shares surged by over 4% following the reports, reflecting investor optimism about the potential shake-up. The company is set to release its half-year results next month, where further details on its strategic review may emerge. For now, Diageo has declined to comment on the speculation, stating it does not respond to market rumours.

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Diageo , the world's top spirits maker, is exploring a potential spin-off or sale of beer brand Guinness and is reviewing its stake in LVMH's drinks u

www.reuters.com

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