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Diageo is reportedly interested in selling its iconic Pimm’s brand

Published 22/02/2024, 16:40
Updated 22/02/2024, 17:43
Diageo is reportedly interested in selling its iconic Pimm’s brand

Diageo plc (LON: LON:DGE) is reportedly interested in unloading its iconic Pimm’s brand. Shares of the alcoholic beverages company are slightly in the red at writing.

Diageo to sell to more brands as well

The British multinational is open to selling another two of its non-core brands (Safari and Pampero) as well – as per a Sky News report on Thursday.

Such a move will enable Diageo to expand focus on its more recognised brands which include Baileys, Guinness, and Smirnoff.

Sky News also confirmed today that the London-listed firm is working with Rothschild on the potential sale. The process, however, is in a “very early stage”, it added.

$DGE that currently pays a dividend yield of 2.73% is down more than 20% versus its 52-week high at writing.

Diageo has been challenged over the past year

Note that Diageo plc has had Pimm’s on its portfolio of brands since 1997. The Sky News report this morning arrives after what has been a difficult year for the multinational beverages company.

First, Ivan Menezes – its long-standing chief executive unexpectedly passed away in June of 2023. Then weakness in sales out of Latin America and the Caribbean made it trim its guidance for H1 as well.

In fact, $DGE was previously also reported considering unloading a number of its beer brands including Tusker, Harp Lager, and Smithwick’s in an attempt to restore profits.

Wall Street analysts currently have a consensus “hold” rating on shares of Diageo plc.

This article first appeared on Invezz.com

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