DIAGEO is considering spinning off or selling its $10 billion Guinness beer business, according to reports.
The bombshell claim that the drinks giant is considering selling up comes just days after they announced the fourth price hike in just two years.
The global brewing company has continued to announce rising costs in recent years, despite sales skyrocketing due to it’s popularity.
Diageo is also reviewing the future of its 34 per cent stake in Moet Hennessy, according to a report from Bloomberg News.
It comes at a tough time for Diageo boss Debra Crew, who has seen the company’s shares steadily decline under her leadership over the past year-and-a-half.
The company’s share price has fallen 27 per cent since Crew took over as chief executive 18 months ago.
In November, Diageo shares hit their lowest level since 2017.
The company has already reportedly looked at the potential sale of its Pimms liqueur and Ciroc vodka brands over the past year.
The fresh reports said people familiar with the matter said a potential spin-off or sale of Guinness is being studied among a range of possibilities.
Bloomberg reported that the Irish stout business could be valued north of $10 billion (€9.5 billion), if it looked at a possible stock market listing or gauged possible takeover interest.
Guinness has been a key area of growth for the London-listed group in recent years, with the stout becoming the UK’s most popular beer in 2022, after overtaking Carling lager.
In July, the company said strong sales of Guinness, particularly in the UK, helped to drive an 18 per cent rise in beer sales across the company.
It came as the group revealed total sales dropped for the first time in around four years, amid weaker demand for scotch and rum.
Diageo has been contacted for comment.
Earlier this month, the maker of Guinness, Harp, Smithwicks and Hop House 13 announced they were raising the price of those draught kegs by 6c per pint on February 3.
Guinness 0.0 will meanwhile be raised by 9c per pint.
PRICE PINT
But with VAT, duty and pub margins added, pints of these drinks could end up costing punters an extra 30c.
A Diageo spokesperson said: “Like many businesses, we continue to face increased costs across our Irish operations.
“In an effort to offset these costs and to maintain a sustainable business in Ireland, we have advised our on-trade customers that there will be an increase to the list prices on our full draught product range.”
