Diageo has hired bankers at Rothschild to explore the possible sale of three non-core brands, Sky News reported today.
The leading drinks company is reportedly considering selling the labels Pimms, Safari and Pampero.
Issues
Diageo has been faced with a number of issues in the early months of 2024.
At the end of January it reported expected shipping delays due to attacks on vessels in the Red Sea.
Last year, a slow down of sales led to a build-up of unsold inventory in Latin America, which helped drive a profit warning.
Shares in the company slipped in January when it acknowledged that problems caused by the stock build-up may continue into the new year.
Investor confidence was shaken due to the brand’s admission that they became aware of the unsold stock at a fairly late stage, preventing it from acting sooner to mitigate the issue.
The Johnnie Walker-owner announced a new head of Mexico earlier this month.
'Full Potential'
Earlier this month, Diageo began searching for a new chairman to replace Javier Ferran.
Ferran’s tenure is due to last until 2025, however he could leave sooner, depending on the progress of the search.
Diageo’s shares have fallen by over 17% in the last 12 months.
The company declined to comment on the proposed sales.
Speaking last month about falling shares, chief executive of the drinks company Debra Crew set her sights to the future.
“We are not satisfied with these results,” she said, “and I personally am restless to get this business to perform to its full potential.”
Read More: Diageo Fails To Cheer Investors In First Half As Shares Slip 3%
