Diageo (DEO) is already looking to sell Ciroc vodka and could look to dispose of other subscale or underperforming drink labels, Sabah Meddings, Ruth David and Dinesh Nair of Bloomberg report. Among the possibilities being studied is a potential spinoff or sale of Guinness, which would likely be valued above $10B, people familiar with the matter told Bloomberg. The company could run a dual-track process, weighing a listing while also gauging takeover interest, if it decides to proceed, the sources added. Diageo’s 34% stake in LVMH’s (LVMUY) drinks division, Moet Hennessy, is also under review, the people added. When Diageo reports earnings next month, the company could scrap or lower its growth targets to reset expectations to a more realistic level, Bloomberg says, citing comments from investors and analysts. Shares of Diageo are up 4% to $123.58 in early trading.
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