United Spirits gains on hopes to sell some brands

Diageo president said the company wouldn't shy away from exiting the mass-end brands that do no make money

Shares of United Spirits gained as much as 1.96% after a financial newspaper quoted Diageo Plc's Asia-Pacific president as saying it may get rid of some of the brands at the Indian spirits maker.

"Diageo won't shy away from exiting the mass-end brands (of United Spirits) that do not make money," the newspaper quoted Diageo's Gilbert Ghostine as saying at an investor conference in London on Monday.

"Several brands (of the Indian firm) would require a lot of brand investment and the company's margin improvement would take a lot of time to materialise," the newspaper also quoted Ghostine as saying.

 

Diageo took over United Spirits earlier this year.