Diageo rules out Guinness sale

Source: Food and Drink Digital

Date :26/07/2007 10:09:11

Diageo has reportedly ruled out selling its Guinness brand as it aims to expand sales of the Irish stout in Africa to counter declines in the home market.

Sales of Guinness, which accounts for 13 percent of Diageo's overall revenues, fell 1 per cent globally and 4 percent in Europe in the six months to December.

Chief Executive Paul Walsh told the Financial Times: "We have to continue to grow the brand outside its home market.”

He added that sales of Guinness outside Ireland had risen by approximately 5 percent.

Mr Walsh also played down suggestions the group will buy a big beer brand, but he did confirm its interest in acquiring Absolut, the Swedish vodka brand owned by Vin & Sprit.

The Swedish government is in the process of privatising the company, with the formal process expected to begin in September.

Diageo is also considering acquiring the 66 percent of Moët Hennessy it does not own if it becomes available, said Mr Walsh.

July 26 2007