Diageo says it has no intention to promote Guinness or stake in Moet Hennessy

(Reuters) – Diageo (LON:DGE) doesn’t intend to promote its beer model Guinness or its stake in Moet Hennessy, LVMH’s drinks unit, the world’s prime spirits makers mentioned on Sunday.

On Friday, Bloomberg Information reported that the corporate was exploring choices for Guinness, a star performer in Diageo’s portfolio, in addition to reviewing its funding in Moet Hennessy. The report mentioned that Guinness may very well be valued at greater than $10 billion.

“We observe the latest media hypothesis across the Guinness model and our stake in Moet Hennessy and we will verify that we have now no intention to promote both,” Diageo mentioned in a press release. The corporate additionally mentioned that it will present additional updates on its enterprise with interim outcomes on Feb. 4.

Guinness is an outlier in Diageo’s enterprise, which consists principally of spirits reasonably than beer, however its efficiency just lately has outshone that of key liquor labels, reminiscent of Johnnie Walker whisky.

Spirits gross sales have struggled after a post-pandemic increase in demand for dearer liquor went into reverse. In the meantime, Guinness gross sales have grown by double digits yearly since 2021, with its zero-alcohol model additionally surging.