Diageo scraps sale of Pimm's - report

3rd Oct 2024 12:13

(Sharecast News) - Drinks giant Diageo has scrapped a potential sale of Pimm's, it was reported on Thursday, after it failed to strike a deal.

Diageo was understood to be examining the sale of several brands alongside Pimm's, including rum Pampero and fruit liqueur Safari.

But according to Sky News, it has now abandoned the auction process, which first got underway earlier this year.

Investment bank Rothschild had been hired to asses potential bidders, but a deal did not materialise. It is not known why not.

Diageo declined to comment.

Gin-based Pimm's was first created in London by James Pimm in the 1820s. Long associated with the British summer, it has been an official partner of Wimbledon since 2017.

Diageo acquired the brand in 1997, when Grand Metropolitan and Guinness joined forces to eventually create the current FTSE 100 firm.

With a portfolio of more than 200 brands, including Johnnie Walker, Smirnoff and Captain Morgan, as well as Guinness, Diageo is one of the world's largest drinks company, active in around 180 countries.

However, late last year it warned on profits and its shares have come under pressure ever since.

Chief executive Debra Crew said in January that she was "restless" to get the business performing once again to its full potential.

As at 1300 BST, shares in Diageo were largely unchanged at 2,613.58p. The stock has lost 13% over the last year.