Diageo to scotch talk of Guinness sale
Diageo, the UK-listed drinks group, is to stress this week that a sale of Guinness is not on the cards, despite recent speculation, The Sunday Times reported. Ivan Menezes, chief executive of Diageo, will announce to New York investors that the company considers the Guinness brand to be an important part of its plans, particularly in Africa.
Diageo makes GBP 10.81bn (USD 16.29bn) yearly revenues, of which beer represents 19%, of which approximately 50% comes from sales of Guinness, the unsourced report said.
The ongoing GBP 70bn merger of rivals SABMiller and Anheuser-Busch InBev has prompted calls for a spin-off of Diageo’s beer operations, the item reported. The beer unit, which includes Guinness, Harp and Smithwick’s, is worth approximately GBP 7bn, the report said.
Sunday Times