Diageo pours cold water on rumours it will offload Guinness
Diageo pours cold water on rumours it will offload Guinness
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Drinks giant Diageo has denied it is planning to sell off the Guinness brand following speculation it would overhaul its stable of drinks brands. Reports emerged last week that the FTSE 100 firm, which also owns whisky brand Johnnie Walker and Smirnoff vodka, was considering spinning out the Irish stout maker or selling it off entirely to boost growth.
But in an announcement yesterday, the company said it had 'no intention' of selling the Guinness brand. It also poured cold water on speculation that it was considering options for its substantial stake in luxury drinks firm Moet Hennessy, currently controlled by French giant LVMH.
In demand: Diageo said it had 'no intention' of selling the Guinness brand. Shares initially surged on the news last Friday, so the stock will be watched closely when trading opens today. Diageo is thought to have been considering cashing in on a surge in the popularity of Guinness, which came to a head last month when pubs complained about shortages.
The firm limited the number of barrels of the black stuff pubs could buy due to huge demand. Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
