Diageo rules out sale of Guinness

Diageo ruled out selling the group's Guinness brand as it aims to expand sales of the Irish stout in Africa to counter declines…

Diageo ruled out selling the group's Guinness brand as it aims to expand sales of the Irish stout in Africa to counter declines in the home market, the Financial Timesnewspaper reported, quoting chief executive Paul Walsh.

Sales of Guinness, which accounts for 13 per cent of Diageo's overall revenues, fell 1 per cent globally and 4 per cent in Europe in the six months to December.

"We have to continue to grow the brand outside its home market," the FT quoted Mr Walsh as saying. He added sales of Guinness outside Ireland had risen 4 to 5 per cent.

Mr Walsh also played down suggestions the group will buy a big beer brand, but he did confirm its interest in acquiring Absolut, the Swedish vodka brand owned by Vin & Sprit.

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The Swedish government is in the process of privatising the company, and that he expected a formal process to start in September.

Diageo will also consider acquiring the 66 per cent of Moët Hennessy it does not own if it becomes available, said Mr Walsh.