Spirits giant Diageo seeks to sell beer portfolio on margin concerns- Axios
Reuters
Published Dec 05, 2023 02:40PM ET
Updated Dec 05, 2023 02:57PM ET
(Reuters) -Diageo is seeking to divest its beer portfolio on margin concerns, except flagship brand Guinness, Axios reported on Tuesday, citing sources familiar with the world's largest spirits maker.
The company is looking to sell beer brands including Smithwick's, Kilkenny and Harp Lager, based in Ireland, and Tusker in Kenya, among others, Axios reported, adding that its beer brands were a margin drag on the rest of the business.
Diageo (LON:DGE) declined to comment on the report.
Beer sales of 3.36 billion pounds ($4.23 billion) accounted for just over 14% of total sales at Diageo for the year ended June 30, whereas spirits sales contributed a mammoth 81%.
The Johnnie Walker whisky maker in November warned of a drop in first-half operating profit growth on weakness in some regions.
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Written By: Reuters
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