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GBR | Dec 5, 2023

Spirits giant Diageo seeks to sell beer portfolio on margin concerns

/ Our Today

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Pints of Guinness are seen in a pub, in Dublin, Ireland March 20, 2023. (File Photo: REUTERS/Clodagh Kilcoyne)

(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 declined to comment on the report.

Beer sales of 3.36 billion pounds (US$4.23 billion) accounted for just over 14 per cent of total sales at Diageo for the year ended June 30, whereas spirits sales contributed a mammoth 81 per cent.

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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