This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
Diageo takes Pimm’s off the market
Spirits giant Diageo has allegedly axed the sale of ‘quintessentially British’ brand Pimm’s after it failed to agree terms with bidders.
In February, Diageo reportedly hired advisers at investment bank Rothschild to explore the sale of Pimm’s, Pampero rum, and fruit-flavoured liqueur Safari.
Over the summer, Pampero was offloaded to Gruppo Montenegro, while Portuguese drinks company Casa Redondo acquired Safari. Both were sold for undisclosed sums.
Speaking at a presentation 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 hone in on its higher-priced brands more broadly.
However, on Thursday (3 October), it was reported that the UK-headquartered company had called time on the sale of Pimm’s after failing to reach an agreement with potential buyers.
Diageo acquired the gin-based seasonal drink in 1997, when Grand Metropolitan and Guinness joined forces to eventually create the current FTSE 100 firm.
Since then, the drink has become synonymous with British summertime and has links to major sports and social events including Wimbledon tennis tournament and the Chelsea Flower Show.
However, it has struggled to gain much traction in overseas markets and remains heavily reliant on the UK.
In addition, Patrick Fisher, an analyst at IWSR, noted that Pimm’s is a “highly seasonal and weather-dependent” beverage that performs “best in a hot summer”.
This year, Pimm’s reportedly saw a drop of 19% in sales compared with the year prior. This may be attributed to the UK experiencing the coolest summer since 2015, and Wimbledon seeing a lower attendance due to ‘almost a month’s worth of rain’ falling during the tournament.
While Diageo does not split its sales figures by brand in its annual financial reports, it is estimated that Pimm’s annual retail sales clock in at £86 million (US$109m) – just 0.2% of the firm’s global revenue.
Diageo declined to comment.
Related news
Diageo: India Rare Spirits presents ‘infinite possibilities’