By Investing.com — Shares of Diageo (LON:DGE) Plc climbed 4% Friday following reports from Bloomberg News it is reviewing a possible sale of its drinks portfolio, including Guinness beer and a partnership with LVMH in the Champagne and Cognac categories. The move by Chief Executive Officer Debra Crew is part of an effort to rejuvenate growth at the British beverage giant.
The strategic review has sparked interest among investors as the company explores various options, such as a potential spinoff or sale of the iconic Guinness brand, which could be valued at over $10 billion. Diageo may consider a dual-track process for Guinness, assessing both a public listing and soliciting acquisition interest, the report said. Additionally, Diageo’s 34% stake in Moet Hennessy, the drinks division of LVMH, is being evaluated.
The news comes at a time when Diageo is looking to streamline its operations and focus on core growth areas.
On Thursday, Diageo agreed to sell Cacique, one of the leading Spanish spirits players, to Bardinet S.A..
While no final decisions have been made, and the outcome of these reviews remains uncertain, the market’s positive reaction reflects the potential for significant reshaping of Diageo’s portfolio and future strategy.
The company has not yet released any official statements on the progress of the review or potential buyers for Guinness or the Moet Hennessy stake. The review is in its early stages, and further developments are expected as the company’s deliberations continue. Investors are closely watching Diageo as it considers these transformative moves to drive the company’s growth and enhance shareholder value.
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