(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 high 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 word the latest media hypothesis across the Guinness model and our stake in Moet Hennessy and we are able to affirm that we’ve got no intention to promote both,” Diageo stated in a press release. The corporate additionally stated that it will 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 relatively than beer, however its efficiency not too long ago has outshone that of key liquor labels, reminiscent of Johnnie Walker whisky.
Spirits gross sales have struggled after a post-pandemic increase in demand for dearer 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.
