WED JAN 29 2025-theGBJournal| Spirits giant Diageo Plc on Tuesday sold its 80.4% stake in Guinness Ghana Breweries for US$81 million, further trimming its presence in Africa.
It is understood that Guinness Ghana will remain listed on the Ghana Stock Exchange despite the sale.
The sale follows the dumping of the Nigerian market in September 2024 with the sale of its shareholding in Guinness Nigeria Plc to Tolaram, and in 2022 sold its operations in Cameroon also acquired by Castel, the French drinks conglomerate.
Diageo said it will retain ownership of the Guinness brand in Ghana. and other Diageo brands currently produced by Guinness Ghana, which will be licensed to Guinness Ghana under a new long-term license and royalty agreement.
Diageo added that it will continue to drive the brand and marketing strategy for the iconic Guinness brand, in partnership with Castel, to promote continued growth and development in the country.
In announcing the sale, Diageo said Castel Group has significant and extensive expertise across West and Central Africa, and are a partner to Diageo in 11 other markets in Africa.
All Diageo brands currently produced by Guinness Ghana (Guinness, Malta, Orijin, Smirnoff Ice and Alvaro, and mainstream spririts) will continue to be produced under new license and royalty agreements.
”The transaction announced today (Tuesday), and the expanded long-term partnership with Castel, further demonstrates Diageo’s active portfolio management and commitment to building an efficient operating model in West Africa that is structured to deliver long-term and sustainable growth,” Diageo management said.
In 2023 Diageo created a dedicated spirits company to strenghten its spirit business in West Africa.
Present in 34 countries with strategic beer and spirits distributors, Diageo’s footprint across Africa consists of East African Breweries Limited (Kenya, Tanzania and Uganda) and Diageo South West Central.
“This acquisition exemplifies the entrepreneurial spirit that drives Castel and marks a new milestone in our growth ambition. 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,” Gregory Clerc, Castel Chief Executive Officer, said.
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