Diageo has allegedly called off the sale of its Pimm’s gin-based liqueur after failing to secure an agreement with potential buyers.
Sky News today (3 October) reported the Tanqueray distiller has abandoned auctioning off the British brand, a process which was said to have started earlier this year.
It was unclear as to why neither Diageo nor the potential purchasers in question could not reach an agreement.
Diageo declined to comment on the news when approached by Just Drinks.
In February, the broadcaster also reported the London-listed group had allegedly hired bankers at Rothschild to explore the sales of Pimm’s alongside two other brands: Pampero rum and Safari fruit-flavoured liqueur.
At the time, Sky News added industry sources said Pimm’s would “likely to draw interest from other drinks companies as well as financial investors”.
The disposals of Pampero and Safari was later announced by the Guinness stout owner in July. The former was handed off to Gruppo Montenegro, while the latter was sold to Portuguese drinks company Casa Redondo.
Financial details were not given for either transaction.
Commenting on Safari at the time, John Kennedy, the president of Diageo’s Europe operations, said the sale of the brand “reflects Diageo’s commitment to delivering consistent growth and value to shareholders”.
He added the move would enable the company “to further concentrate on our core areas of strength, including Tequila and whisk(e)y”.
Kennedy made a similar statement later in July on the subsequent sale of Venezualan Pampero, adding the move “demonstrates our disciplined and strategic approach to capital allocation”.
Speaking to journalists at the company’s London headquarters following the release of Diageo's full-year results at the end of July, CEO Debra Crew said the sales of Pampero and Safari were made as the group looked to home in on its higher-priced brands more broadly.
She added: “It's not just about today, it really is thinking about the future, because there is kind of a sweet spot, and when others will want to buy the brand for a good price and it's not as core to us, it just benefits both sides.”
Crew declined to disclose at the time whether a sale of Pimm’s was on the cards.
