Pimm’s maker Diageo is making a bid to sell British drink to focus on global markets

DRINKS giant Diageo is asking shoppers if it is ‘Pimm’s O’clock’ as the company considers selling the British favorite drink in the summer.

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

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

Known as the ‘house cup’, it originally contained gin, quinine and various spices, although the exact recipe remains a closely guarded secret.

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

Drinking it is often associated with warm weather, so it is also the signature drink of the Wimbledon tennis tournament.

The sales of the much-loved British drink come after a few test months at the helm of 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 CEO of the company in June last year.

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

Ms Crew, who described this issue as a ‘perfect storm’, now faces the challenge of regaining shareholder confidence.

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

It is not known how much it would like to sell Pimm’s for, but experts say a deal would not make much difference to the bottom line.

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

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

FTSE SICK IN DRUG FIRM LOSS

London’s lackluster stock market has taken another major blow after drugmaker Indivior said it planned to move its stock exchange listing to New York.

The company – maker of a controversial treatment for opioid addiction – said a US listing would help boost its valuation.

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

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

Meanwhile, the number of new businesses floating in London has reached an all-time low.

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

ROLLER BROOSTER

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

The company has seen them rise from £652m to £1.6bn – with chief Tufan Erginbilgic saying he expected profits to rise by another quarter this year.

The company has benefited from a boom in orders for its defense equipment amid global tensions.

It is also cutting 2,500 jobs to reduce costs.

LLOYDS A-SPRING

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

Higher interest rates helped Lloyds grow pre-tax profits by 47 percent to £7.5 billion, up from £4.8 billion last year.

But banks are facing an investigation into whether drivers were defrauded out of car finance – and possible compensation claims.

Boss Charlie Nunn said fewer customers were defaulting on loans than expected despite the cost of living crisis.

THE BIG BITE OF THE SHARK

THE founder of Gymshark has declared that 2024 “will be our biggest year ever” – despite a sharp fall in profits.

Ben Francis, 31, plans to open a second store in east London and a pop-up store in New York.

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Despite cash-strapped shoppers, Francis plans to launch a higher-end range of gear in Selfridges – worn by celebrities such as model Roxy Horner.

Profits fell from £27.8 million to £13 million last year. The fall came as sales were still growing 14 percent to £556.2 million.

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

FEELING CHIPPER

The stock markets went into flames yesterday as Nvidia caused a mega rally.

The world’s most valuable chipmaker rose 14 percent, adding more than £180 billion to its valuation on the back of record results.

The stock’s 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 £1.5 trillion, is at the center of the AI ​​boom, with analysts calling it “the most important stock on the planet”.

NESTEL SMELLS THE COFFEE

THE maker of Kit Kat and Nescafe will ease price rises as consumers switch to cheaper own brands.

Swiss food giant Nestle revealed it had increased prices in Europe by 10.6 percent last year, but sales volume had fallen by 2.4 percent.

Nestle’s sales fell in almost every region worldwide.

Boss Mark Schneider blamed the price increases on “a food price inflation spike of historic proportions. . . an event that occurs once every 50 years.”