(Reuters) -Diageo, the world’s top spirits maker, is exploring a potential spin-off or sale of beer brand Guinness and is reviewing its stake in LVMH’s drinks unit, Moet Hennessy, Bloomberg News reported on Friday, citing people familiar with the matter.
News about a potential sale of the beer label, a star performer in Diageo (LON:)’s portfolio, helped lift Diageo’s shares almost 4% higher, becoming the top percentage gainer on the blue-chip index. However, some analysts and one source familiar with the situation said a Guinness sale right now did not make sense.
Diageo declined to comment on market speculation; LVMH declined to comment.
Guinness is an outlier in Diageo’s business, which consists mostly of spirits rather than beer, but its performance recently has outshone that of key liquor labels like Johnnie Walker whisky.
Spirits sales have struggled as a post-pandemic boom in demand for pricey bottles of liquor went into…
