Diageo cash could add venom to Cobra

28 July, 2008

Diageo is reportedly ready to take a 30% stake in Cobra Beer in a deal which could be worth as much as £30 million.

The deal would be intended to give a turbo boost to a lager which has performed strongly in the UK market, but is thought to need extra working capital and distribution muscle to achieve its national and international ambitions.

Selling a stake in the business he built up from scratch may come as something of a wrench for entrepreneur Lord Karan Billimoria, but the possibility of Cobra joining the portfolio of the world’s biggest drinks corporation may be too lucrative to resist.

Diageo – which owns Guinness and distributes Red Stripe lager – is not the only company thought to be in talks with Cobra.




Bookmark this


Site Search

COMMENT

What to expect at Christmas

The arrival of October means that we’re now officially in Nielsen’s Christmas trading period. Manufacturers and retailers alike have until December 30 to optimise their sales plans and activate them in-store in order to win at Christmas.

Click for more »
Upcoming events

Polls

Is blended Scotch overshadowed by single malt in retailers?

  • Yes
  • No
  • Don't know

Facebook

Twitter