News

UK: Diageo should ditch Guinness for spirits - analyst

Most popular

Why spirits should look back to move forwards

Gaming - the next frontier for drinks marketing

Why spirits must rethink its future positioning

Responsible drinking efforts around the world

Mainstream media is confusing spirits' consumer

MORE

Investec Securities analysts believe that Diageo would be better off selling Guinness and diving further into spirits, despite strong growth for the beer brand in Africa.

Diageo is already in a good position to make acquisitions, but it could arrive at the next round of spirits industry consolidation with an unrivalled warchest if it sells Guinness, Investec analysts said today (20 January). The drinks has faced intermittent speculation over the future of Guinness, but has always denied any intention to sell up.

Investec said in a note today: "It has a trophy asset in Guinness and its brewing business that we think can and should be disposed to fund an increased focus on spirits." The analysts did not specify a potential price tag or potential suitors for the Irish stout brand.

Despite Investec's assertion, a sale looks unlikely in the short-term at least. Guinness remains an integral part of Diageo's business in emerging markets across Africa, a region that group CEO Paul Walsh has described to just-drinks as "a jewel". 

In an interview with just-drinks, published today, Diageo's Africa president, Nick Blazquez, said that beer accounts for 75% of the company's business in the region. He added that "beer and spirits together is a winning combination in Africa".


Related Content

"Our strategy in Africa is to grow our beers fast and our spirits faster" - Diageo Africa president ...

How has Diageo performed in H1 fiscal-2019? - results data

How has Diageo performed in H1 fiscal-2019? - results data...

How did Diageo perform in FY2018? - results

How did Diageo perform in FY2018? - results...

UK vodka flatlines as gin drives spirits growth - figures

UK vodka flatlines as gin drives spirits growth - figures...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?