Diageo in talks to offload range of US-focused spirits – reports | Progresiv
Diageo is putting several of its US-focused spirits brands up for sale as it shifts attention to its premium labels, according to Sky News. 
Brands that may be offloaded include Goldschläger schnapps, Myers’s Rum and Popov vodka, and it has been reported that a buyer would have to pay between 500 million dollars and 1 billion dollars for all the brands. A Diageo spokesperson said: “We regularly review our portfolio to ensure we are maximising shareholder value.”
In its most recent-half year results, Diageo – which also owns Johnnie Walker, Guinness and Baileys – saw a net sales growth of 2% in North America and a 3% sales boost in its US Spirits division.
However, vodka sales were down 8% due to a poor performance of Smirnoff, Cîroc and Ketel One.
The company has since introduced a series of innovations centred around its US-focused spirits brands, unveiling a botanical Ketel One vodka range and relaunching its Cîroc Summer Colada spirit.
Last year Diageo said it expects to deliver 500 million pounds in savings by the end of 2019, along with a considerable improvement in its organic margins. It has been reinvesting some of the savings produced through cost-cutting initiatives into advertising, particularly in the US. (www.foodbev.com)
