Diageo halts sale of Pimm’s Liqueur after failing to secure agreement with buyers
UK – Diageo, the British multinational beverage giant, has reportedly called off the sale of its Pimm’s gin-based liqueur brand after failing to reach an agreement with potential buyers.
According to reports from Sky News, the auction process, which began earlier this year, has been abandoned, leaving the popular British brand under Diageo’s portfolio.
Pimm’s, created in 1840 by London-based James Pimm, is a summer favorite in Britain known for its unique blend of gin, herbs, and liqueur.
The brand was acquired by Diageo in 1997 following the merger of Grand Metropolitan and Guinness, which led to the creation of Diageo. Despite efforts to sell the brand, a deal could not be finalized with any interested parties.
In February 2024, it was revealed that Diageo had hired investment bank Rothschild to explore the sale of Pimm’s along with two other brands—Pampero rum and Safari fruit-flavored liqueur.
Industry insiders had anticipated that Pimm’s would attract interest from various beverage companies and financial investors.
However, while Pimm’s sale fell through, Diageo successfully offloaded the Pampero and Safari brands.
Pampero, a Venezuelan rum brand, was sold to Italian spirits company Gruppo Montenegro, while Safari was purchased by Portuguese beverage group Casa Redondo in July 2024.
The financial terms of these deals were not disclosed.
John Kennedy, Diageo’s president for European operations, explained that the disposal of Safari was part of Diageo’s strategy to drive consistent growth and deliver value to shareholders.
He highlighted that the company intends to focus more on its core strengths, particularly in the tequila and whiskey categories.
Diageo’s CEO, Debra Crew, reiterated this during the company’s full-year results release, emphasizing that these sales were part of a long-term strategy to concentrate on higher-value brands.
Crew stated that it made business sense to sell off non-core assets like Pampero and Safari when a favorable deal could be reached.
Diageo completes sale of Guinness Nigeria
Meanwhile, Diageo has completed the sale of its shareholding in Guinness Nigeria PLC to Tolaram.
Despite the sale, Guinness Nigeria will continue producing and distributing Guinness and its other local brands under a licensing and royalty agreement, in line with Diageo’s beer operating model.
These strategic moves are in line with Diageo’s growth ambition, focusing on sustainability and enhancing shareholder value as the company reshapes its brand portfolio for future growth.
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