Diageo looks to offload lower-end brands as it focuses on pricier labels
Brands such as Popov vodka have been losing ground as drinkers consume less alcohol but favour more expensive options
Diageo has begun an auction of spirits brands including Goldschlager schnapps, Popov vodka, Myers’s rum and Romana Sambuca in a sale that could fetch $500m-$1bn, according to a person familiar with the situation. The possible sale concerns a portfolio of US-focused brands that Diageo no longer considers core as it focuses on higher-end labels, said the person, asking not to be identified because the process is private. The London-based distiller has appointed Centerview Partners to manage the sale, the person added. Diageo CEO Ivan Menezes has been focusing on flagship labels such as Johnnie Walker scotch and new acquisitions such as Casamigos tequila, backed by the actor George Clooney, to drive growth. In recent years, Diageo has also divested other assets such as its roster of wine brands and the Gleneagles Hotel in Scotland. "We regularly review our portfolio to ensure we are maximising shareholder value," a Diageo spokesperson said. The shares rose as much as 2.1% in London. Sk...
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