Diageo has declined to comment on the latest claim that a near-total exit from beer is on the cards, although Global Drinks Intel understands no such move is being considered.
Earlier today, online news provider Axios cited unnamed sources in a report claiming that Diageo is “[seeking] to divest the rest of its beer portfolio aside from its flagship brand Guinness”. No further substantiation was included in the report, which Diageo has chosen not to comment on.
Beer accounts for almost 15% of annual sales for Diageo with Guinness posting a 16% top-line jump in the 12 months to the end of June.
Speaking to sources of its own following the speculation, Global Drinks Intel has learned that no divestment plans are in the offing with the group’s ‘asset-light’ approach to its beer operations set to continue.
Referencing what it called its “flexible beer operating model” last year, Diageo agreed to sell Guinness Cameroon to Castel Group for just over US$460m. The transaction, prompted by “capacity constraints” in the African country, came only six months after the company sold Meta Abo Brewery in Ethiopia, also to Castel, while committing to “continue to service the Ethiopian market with its international spirits portfolio”.
Diageo has invested in its brewing capabilities in Ireland this year with $200m going towards a second brewing facility in the country that will free up space for Guinness at its home in Dublin.
