(Reuters) – Diageo (LON:) doesn’t intend to promote its beer model Guinness or its stake in Moet Hennessy, LVMH’s drinks unit, the world’s prime spirits makers stated on Sunday.
On Friday, Bloomberg Information reported that the corporate was exploring choices for Guinness, a star performer in Diageo’s portfolio, in addition to reviewing its funding in Moet Hennessy. The report stated that Guinness might be valued at greater 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 stated in an announcement. The corporate additionally stated that it might present additional updates on its enterprise with interim outcomes on Feb. 4.
Guinness is an outlier in Diageo’s enterprise, which consists largely of spirits quite than beer, however its efficiency not too long ago has outshone that of key liquor labels, resembling Johnnie Walker whisky.
Spirits gross sales have struggled after a post-pandemic growth in demand for costlier liquor went into reverse. In the meantime, Guinness gross sales have grown by double digits yearly since 2021, with its zero-alcohol model additionally surging.
