Exploring a Sale
Diageo, the drinks giant, is contemplating bidding farewell to the beloved British summertime drink, Pimm’s, to focus on global markets. The company is in discussions with Rothschild bankers to potentially sell the fruity gin punch, a staple of British social gatherings.
Rich History
Pimm’s, introduced in 1840 by James Pimm, was originally known as the "house cup" and featured gin, quinine, and various herbs. Its exact recipe remains a closely guarded secret. Typically enjoyed during the summer months, Pimm’s is served with lemonade, ice, mint, and fruity garnishes, making it synonymous with warm weather and events like the Wimbledon tennis tournament.
Business Strategy Shift
The potential sale of Pimm’s comes as Debra Crew, the CEO of Diageo, navigates a challenging period for the company. After issuing a profit warning due to economic challenges in Latin America, Diageo is exploring ways to refocus on faster-growing international markets. While the sale of Pimm’s may not significantly impact Diageo's bottom line, it signals a strategic shift towards high-growth categories.
Market Impact
Experts suggest that while the exact sale price remains unknown, Pimm’s generates less than £100 million in annual sales and is primarily consumed in Britain. Analysts view the potential sale as a move by Diageo to concentrate on expanding its presence in global markets with greater growth potential.
Did you miss our previous article…
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