Diageo ditches plans to sell Pimm's

Diageo, the alcoholic beverages giant, has scrapped the sale of its Pimm's brand after failing to reach a deal with potential buyers, reports stated today (3).

According to a report in Sky News, Diageo, which has been under mounting pressure from investors after a slowdown in sales, has abandoned an auction process which kicked off earlier this year.

The precise reasons underpinning the failure to agree a transaction is still unclear.

Pimm's was acquired in 1997 as part of the tie-up between Grand Metropolitan and Guinness plc which led to the formation of Diageo.

Diageo has a portfolio of over 200 products and is one of the world's largest drinks companies.

Diageo, which has a market capitalisation of £58bn, has experienced a torrid 12 months in the wake of a profit warning last November which blamed weak sales of Scotch whiskey in Latin America and the Caribbean.

Debra Crew, who took over in June following the untimely death of predecessor Sir Ivan Menezes, pledged to get the business performing again, declaring herself "restless" to improve its fortunes.

Diageo's portfolio includes some of the world's best-known drinks brands, including Smirnoff vodka, the cream liqueur Baileys and gin brand Tanqueray.