Shares in Diageo soared to the top of the FTSE 100 after a report said it is considering the spin-off or sale of stout brand Guinness.

Bloomberg said it is also considering the sale of its 34% stake in LVMH’s drinks unit, Moet Hennessy, as chief executive Debra Crew reviews its portfolio.

It has several options, including the sale ofl Ciroc vodka and other under-performing labels.

Diageo is the world’s biggest spirits company whose brands include Johnnie Walker Scotch whisky. Guinness would likely be valued at above $10 billion, Bloomberg reported.

Soon after Ms Crew’s appointment in 2023 Diageo’s share price was hit by a sharp sales decline in Latin America and the Caribbean. A year ago it briefly put its fruity alcoholic drink Pimm’s up for sale.

The speculation comes amid rising costs for the hospitality industry and shift to non-alcohol products which is forcing drinks companies to review their operations.

However, Guinness remains hugely popular and has recently suffered from a shortage of supplies in the UK. The latest sales data showed that Guinness consumption has risen more than 20% over the past twelve months.

The company could look to deepen its ownership in the Moet Hennessy venture, or exit altogether, the report said.

It added that if Diageo wanted to sell the stake, LVMH has an obligation to buy it, although at a 20% discount to its fair value, as per their agreement.

Shares in Diageo closed 102p (4.25%) higher at 2503.5p.

A spokeswoman at Diageo said: “We do not comment on market rumours.”