Diageo ‘exploring sale of trio of brands, including Pimm’s’

Diageo is reportedly looking for a buyer for its UK liqueur brand Pimm’s, as well as its Safari fruit-flavoured liqueur and Pampero rum.

The drinks giant has reportedly hired advisers at investment bank Rothschild to explore the sale of the three brands, Sky News reported today (22 February).

According to the broadcaster, which was first to report the development, the process is at “a very early stage” and may not lead to disposals.

It is unclear whether Diageo would try to offload the brands separately or whether it was only interested in bids for the combined trio.

Sky News added industry sources said that Pimm’s was “likely to draw interest from other drinks companies as well as financial investors”.

Diageo could not immediately be reached for comment.

In December, Axios reported Diageo was seeking to sell a clutch of assets in beer but retain Guinness, its flagship brand in that market.

However, Just Drinks understood at the time the company had no plans to divest any of its beer brands.

Last month, Diageo booked its half-year financial results. Net sales stood at $10.96bn, down 1.4% on a reported basis and 0.6% organically. Analyst consensus expectations were for net sales to be flat year on year on an organic basis.

Operating profit dropped 11% to $3.32bn. Organically, operating profit before exceptional items fell 5.4% to $3.51bn. The consensus forecast among City analysts was for a 4.7% decline.

Profit attributable to the company’s shareholders slid 18% to $2.21bn.