Sector News

Diageo reportedly in talks to offload trio of brands, including Pimm’s

February 25, 2024
Consumer Packaged Goods

Diageo is reportedly seeking a buyer for a trio of its brands as it looks to restore its profits and increase its value for shareholders.

The owner of Guinness and Baileys has hired financial service group Rothschild to explore the sale, which includes Pimm’s, fruit liqueur brand Safari and Pampero rum. Each brand could be offloaded individually or as a three, according to Sky News.

Diageo declined to comment on the reports when approached by FoodBev.

The drinks giant acquired Pimm’s in 1997 as part of the tie-up between Grand Metropolitan and Guinness, which led to the formation of Diageo. Pimm’s, a “secret recipe of gin, herbs and liqueur,” was created in 1840 in London by James Pimm and is a popular drink in the summer, primarily with consumers in the UK.

The process of disposing of non-core brands from its portfolio comes at a testing time for Diageo, as shares have fallen by over 17% in the last twelve months. The company has had a challenging year after the death of its long-time CEO Ivan Menezes in June following a battle with a brief illness.

Additionally, Diageo received a profit warning in November, for which it blamed slow sales, particularly of Scotch whiskey in Latin America and the Caribbean – these markets account for around 25% of its global whisky sales and represent about 25% of the group’s overall revenues.

The following month, it was reported that Diageo was looking for a buyer for several of its beer brands, including Kilkenny and Tusker. Over the last year, the company has also been embroiled in dispute with US rapper Diddy after he accused the drinks giant of racism in relation to their tequila joint venture. The two parties settled the lawsuit in January.

That being said, Diageo has unveiled a cohort of innovations in the last month, including a new line of ready-to-serve cocktails, RTD Cîroc cans, a spicy Smirnoff variation and a Mediterranean-inspired vodka, to name a few.

The drinks giant has also made a number of investments in its business in recent months, including capital injection to accelerate the decarbonisation of the glass industry, MXN 100 million (approx. $5.8 million) in funding to increase water preservation in its tequila production and its new partnership lab, ‘Fusion by Diageo,’ which identifies innovators to co-develop the next generation of digital products that will “elevate consumer experiences”.

By Phoebe Fraser


comments closed

Related News

April 14, 2024

McCain Foods completes acquisition of Strong Roots

Consumer Packaged Goods

McCain Foods has completed the acquisition of Irish plant-based frozen food manufacturer Strong Roots. The acquisition follows McCain and Strong Roots’ strategic partnership, which began in 2021 and resulted from a $55 million investment.

April 14, 2024

Cargill’s alternative cocoa collaboration gets off the ground as cocoa prices continue to climb

Consumer Packaged Goods

Cargill partners with Voyage Foods to scale up alternatives to cocoa-based products to meet consumers’ indulgence needs. The commercial partnership will also provide food manufacturers with nut spreads produced with no nut or dairy allergens used in the recipe formulation.

April 14, 2024

L’Occitane stock still halted as owner reportedly tries again to privatize beauty company

Consumer Packaged Goods

L’Occitane International owner Reinold Geiger is reportedly close to taking the company private in a deal with Blackstone. The French skin care company’s filing halted trading of its Hong Kong-listed shares this week. This is the second time in months that the Australian billionaire has attempted a buyout.

How can we help you?

We're easy to reach