Diageo on Tuesday announced the sale of its majority shareholding in Guinness Ghana Breweries plc to Castel Group.
A key player in the production and distribution of beverages across Africa, Castel will acquire Diageo’s 80.4 per cent stake in the local unit for $81 million (£65.2m).
Diageo will retain ownership of the Guinness brand, and other Diageo brands currently produced by Guinness Ghana (Malta, Orijin, Smirnoff Ice and Alvaro, and mainstream spirits) will be licensed to Guinness Ghana under a new long-term license and royalty agreement.
Diageo said it will continue to drive the brand and marketing strategy for the Guinness brand, in partnership with Castel, to promote continued growth and development in the country.
“Guinness Ghana is performing strongly powered by a fantastic team of people. Through this transaction, I look forward to the Guinness brand continuing to thrive and delivering further growth,” Dayalan Nayager, president Diageo Africa and chief commercial officer, said.
“I am excited to extend our partnership with Castel, a long-term partner in the region with a proven track record.”
Castel Group has significant and extensive expertise across West and Central Africa, and are a partner to Diageo in 11 other markets in Africa.
“This acquisition exemplifies the entrepreneurial spirit that drives Castel and marks a new milestone in our growth ambition,” Gregory Clerc, Castel chief executive, said.
“It reflects our ability to go where we are least expected, exploring new horizons on a continent full of opportunities. With this 22nd African country, we reaffirm our dynamism, our boldness, and our confidence in Africa’s potential.”
Earlier this week, Diageo has announced the sale of its rum brand Cacique to Spanish spirits firm Bardinet S.A.
The company said the latest transaction, and the expanded long-term partnership with Castel, further demonstrates its “active portfolio management and commitment to building an efficient operating model” in West Africa that is structured to deliver long-term and sustainable growth.
The announcement follows the sale in September 2024 of Diageo’s shareholding in Guinness Nigeria plc to Tolaram; the announcement in October 2023 of a wholly-owned dedicated spirits company to strengthen Diageo’s international premium spirits business and serve a wider geographic reach across West Africa; and the sale of Guinness Cameroon to Castel in July 2022.
Diageo’s footprint across Africa consists of East African Breweries Limited (Kenya, Tanzania and Uganda) and Diageo South West Central, and the company is present in 34 countries with strategic beer and spirits distributors.
