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LONDON — After a wave of speculation suggesting Diageo might part ways with Guinness, the global spirits leader has unequivocally dismissed such claims. In a statement on Sunday, Diageo affirmed, “We note the recent media speculation around the Guinness brand and our stake in Moët Hennessy and we can confirm that we have no intention to sell either.”
The response follows a report by Bloomberg suggesting Diageo was evaluating options for Guinness, a cornerstone of its portfolio, and its minority stake in LVMH’s Moet Hennessy. Guinness was rumoured to carry a potential valuation exceeding $10 billion.
As previously reported by THE GOODS, whispers of a possible sale fuelled market speculation, with analysts questioning the fit of a beer brand in a portfolio dominated by spirits. Yet Diageo’s latest remarks signal a recommitment to its Irish flagship.
Diageo continues to divest non-core brands. The spirits giant officially sold Venezuelan rum brand Cacique to La Martiniquaise-Bardinet, a French spirits company. Diageo’s recent divestments include Safari Liqueur, Windsor Scotch, TYKU Sake, Picon, and Archer Schnapps. Yet, Guinness has become an outlier not just for its category but for its exceptional performance. While Diageo’s spirits business, including Johnnie Walker whisky, has faced challenges after a post-pandemic boom, Guinness has delivered double-digit growth every year since 2021. Its alcohol-free counterpart, Guinness 0.0, has also been a resounding success, contributing to the brand’s revitalised momentum.
The company, which holds a 34% stake in Moët Hennessy, emphasised its strategic alignment with the luxury wine and spirits house. The two businesses have long benefited from their partnership, especially as consumer trends lean toward premium offerings.
As for what lies ahead, Diageo hinted at providing further updates during its interim results on February 4th, leaving industry observers eager for clarity on its broader strategy.
No smoke without fire?
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