Diageo seeks to sell beer brands as profits hit 3-year low


Diageo is mulling a sale its beer brands following its profits falling to a three-year low, according to US publication Axios.

While Guinness is not thought to be on the table, brands such as Irish tipples Kilkenny and Harp, Tusker, Senator and SeyBrew are reported to be on the market.

Companies understood to be considering Diaego’s beer brands include Heineken and C&C, according to the publication.

The profit plunge from the drinks giant’s beer brands are diluting the business’ margins.

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Diaego’s beer sales totalled £3.4 billion for the financial year that ended in June, yet accounted for just 14% of the company’s total revenue.

In comparison, its spirits and liqueurs portfolio, which includes brands such as Baileys, Johnnie Walker and Smirnoff, accounted for 81% of its total profits.

It comes as Diageo warns that slower growth was expected in the second half of the year, following a “materially weaker” sales performance in locations such as the Caribbean and Latin America.

Last year, Diageo sold Ethiopian beer brand Meta Abo to Castel’s BGI for an undisclosed sum, after later registering a loss of £95 million.



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