The UK-based distiller addressed rumors regarding Guinness and its 34% stake in Moet Hennessy, which is part of the luxury goods giant LVMH. In a statement released on Sunday, they confirmed, “We have no intention to sell either.”
Bloomberg News had previously reported that the company was evaluating its portfolio after a decline in shares since Debra Crew took over as CEO a year and a half ago.
There have been discussions about various options, including possibly spinning off or selling the iconic Guinness brand, as well as either selling their stake in Moet Hennessy or increasing their ownership, according to insiders.
With the new CFO, Nik Jhangiani, taking a closer look at the company’s diverse portfolio—from Scottish single malts to champagne and cognac—investors and analysts are anticipating some changes at Diageo.
The company plans to share its interim results on February 4, which could lead Ms. Crew to adjust Diageo’s growth targets to align with more realistic expectations, as suggested by investors and analysts.
Diageo is also considering selling Ciroc vodka, a brand that was once associated with Sean “Diddy” Combs, and may look to offload other smaller or underperforming brands.
Several options are still in the early stages of consideration, including a potential spin-off or sale of Guinness, which could be valued at over $10 billion (€9.5 billion), according to sources.
If they decide to move forward, the company might explore a dual-track approach, weighing a public listing while also assessing interest from potential buyers regarding their Moet Hennessy stake.
If Diageo aims to acquire complete ownership of the joint venture, it may need to consider a rights issue or divest its beer division, according to Trevor Stirling, an analyst at Bernstein. He also noted that former CEO Ivan Menezes consistently expressed interest in acquiring Moet Hennessy should it become available.