Pimm’s maker Diageo bids to sell off Brit tipple to focus on global markets

DRINKS giant Diageo is asking buyers if it’s “Pimm’s O’clock” as it considers flogging the summertime fave British tipple.

The company is working with bankers at Rothschild to explore a sale of the fruity gin punch, according to Sky News.

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Pimm’s was introduced to drinkers in 1840 by James Pimm, the owner of an oyster bar, as a beverage to aid digestion.

It was known as the “house cup” and originally featured gin, quinine and various herbs although its exact recipe remains a closely guarded secret.

It is usually consumed in the summer months and is served with lemonade, ice, mint and fruity garnishes.

Drinking it is often linked to warm weather so it is also the signature drink of the Wimbledon tennis tournament.

The sale of the much-loved British drink comes after a testing first few months at the helm for Debra Crew, the relatively new boss of the FTSE 100 drinks firm, which is also behind Johnnie Walker and Guinness.

Ms Crew took over as the firm’s CEO in June last year.

Just five months later Diageo spooked investors with a profit warning on the back of cash-strapped customers in Latin America cutting back on booze.

Ms Crew, who described that issue as a “perfect storm”, is now facing a challenge to regain shareholder confidence.

Diageo, which made £17.1billion of sales last year, was formed in the merger between Guinness and Grand Metropolitan in 1997 and employs more than 30,000 people.

It is not known how much it would want to sell Pimm’s for, but experts say that any deal would not make much difference to its bottom line.

The brand is largely only consumed in Britain and is estimated to make less than £100million in sales a year.

Edward Mundy, analyst at Jefferies, said while a sale was “not material” to Diageo a move to offload it showed that it was tightening its focus on faster-growing categories with international expansion potential.

FTSE SICK AT DRUG FIRM LOSS

LONDON’S lacklustre Stock Exchange has been dealt another big blow after drug firm Indivior said it was planning to switch its listing to New York.

The firm — maker of a controversial opioid addiction treatment — said a US listing would help boost its valuation.

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Shares in the FTSE 250 company jumped by more than a fifth on the back of the news to £16.62, valuing the company at £2.25billion.

The snub to the City is another dent for the London Stock Exchange after chip giant Arm opted for New York and a string of others including Flutter, CRH, Ferguson and TUI have switched to rivals.

Meanwhile, the number of new companies floating in London has hit rock bottom.

Despite the woes, the London Stock Exchange Group is still planning to double boss David Schwimmer’s pay to £11million.

ROLLER TOASTER

JUST a year after the boss of Rolls-Royce called it a “burning platform”, the plane engine maker’s profits have more than doubled.

The firm has seen them jump from £652million to £1.6billion — while chief Tufan Erginbilgic said he expected profits to rise by another quarter this year.

The company has benefited from a boom in orders for its defence gear amid global tensions.

It is also stripping out 2,500 jobs to cut costs.

LLOYDS A-LEAPING

RECORD profits at Lloyds Banking Group have been overshadowed by it putting £450million aside to cover a potential hit from an investigation into its car loans.

Higher interest rates helped Lloyds post a 47 per cent rise in pre-tax profits to £7.5billion, up from £4.8billion last year.

But banks are facing a probe into if drivers were ripped off on car finance — and potential compensation claims.

Boss Charlie Nunn said despite the cost of living crisis, fewer customers defaulted on borrowing than expected.

SHARK’S BIG BITE

THE founder of Gymshark has declared 2024 “will be our biggest ever year” — despite it suffering a sharp slump in profits.

Ben Francis, 31, is planning to open a second store in East London and a pop-up shop in New York.

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Despite cash-strapped shoppers cutting back, Mr Francis plans to launch a more expensive, upmarket range of the gear — worn by celebs such as model Roxy Horner — in Selfridges.

Profits dipped from £27.8million to £13million last year. The drop came as sales still grew 14 per cent to £556.2 million.

It has cut jobs in the US and closed supplier offices in Hong Kong and Mauritius.

FEELING CHIPPER

STOCK markets caught alight yesterday as Nvidia sparked a mega rally.

The world’s most valuable chip maker soared 14 per cent, adding more than £180billion to its valuation on the back of bumper results.

Its share rise boosted markets around the world — from the tech-heavy Nasdaq in the US to Japan’s Nikkei, which was lifted above its 1989 peak.

Nvidia, now valued at £1.5trillion, is at the centre of the AI boom with analysts calling it “the most important stock on planet Earth”.

NESTLE SMELLS THE COFFEE

THE maker of Kit Kat and Nescafe will ease off raising prices because shoppers are switching to cheaper own-brands.

Swiss food giant Nestle revealed it had increased prices in Europe by 10.6 per cent last year — but its volume of sales had fallen 2.4 per cent.

Nestle’s sales fell in almost every region globally.

Boss Mark Schneider blamed price rises on “a food price inflation spike of historic proportions . . . a one in 50 years event”.

This post first appeared on thesun.co.uk