Diageo Rumoured To Be Selling Off $1bn Worth of Brands
Global drinks producer Diageo is thought to be selling off a raft of US-focused spirits brands, including Goldschlager and Myer’s Rum, estimated to be worth up to US$1 billion.
As reported by Sky News, chief executive, Ivan Menezes, has put a portfolio of US-focused spirits brands on the market as part of its continued efforts to streamline its portfolio and offload non-core brands, focusing on its more premium labels.
Brands earmarked for sale include Myer’s Rum, which launched in the US in 1934; Popov, a vodka label; Romana, a Sambuca brand; and Goldschlager, a cinnamon schnapps known for containing flakes of gold leaf.
It comes as Diageo, which has more than 200 brands, continues its work to streamline its portfolio, having sold its wine business in 2016 to Treasury Wine Estates for £361 million, as well all of its interests in the brewing industry. In 2015, it sold Scottish hotel-and-golf resort Gleneagles Hotel Ltd for £200m.
Most recently, Diageo bought George Clooney’s Tequila brand Casamigos in a deal worth between $500 million to $1bn.
According to Sky News, Diageo is keen to sell the brands in a single transaction, rather than selling each brand individually, with the process expected to last several months. Diageo is expected to confirm the plans with its full-year results in July.
Diageo declined to comment on the prospective sale itself, with a spokesperson for the company stating: “We regularly review our portfolio to ensure we are maximizing shareholder value.”
Read More at Source: Thedrinkbusiness
