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Diageo plc, reveals the sale of its 80.4% stake in Guinness Ghana Breweries plc to Castel Group, strengthening its partnership with Castel in Africa.
Diageo will maintain ownership of the Guinness brand, along with other Diageo brands that are presently manufactured by Guinness Ghana, which will be authorized to operate under a new long-term licensing and royalty contract with Guinness Ghana. Diageo will persist in leading the brand and marketing strategy for the legendary Guinness brand, collaborating with Castel to foster ongoing growth and advancement in the nation.
Diageo’s adaptable and asset-light beer operating model enables it to choose the best structure and market approach according to local conditions, enhancing efficiency and profitability, while Diageo maintains control over the brand and marketing strategy.
Castel Group possesses considerable and broad proficiency throughout West and Central Africa, and collaborates with Diageo in 11 additional markets across Africa.
All Diageo products now made by Guinness Ghana (Guinness, Malta, Orijin, Smirnoff Ice, Alvaro, and mainstream spirits) will keep being produced under fresh license and royalty contracts.
The transaction revealed today, along with the enhanced long-term alliance with Castel, further illustrates Diageo’s proactive portfolio management and dedication to creating an effective operating model in West Africa designed for long-term and sustainable growth.
This announcement comes after Diageo’s sale of its stake in Guinness Nigeria plc to Tolaram in September 2024 to boost Guinness’s expansion in Nigeria; the October 2023 declaration of a fully-owned dedicated spirits firm to enhance Diageo’s premium spirits business internationally and expand its geographic presence in West Africa; and the July 2022 sale of Guinness Cameroon to Castel.
Diageo’s presence in Africa includes East African Breweries Limited (Kenya, Tanzania, and Uganda) along with Diageo South West Central. Diageo has a presence
Commenting on the news Dayalan Nayager, President Diageo Africa and Chief Commercial Officer, said:
“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. I am excited to extend our partnership with Castel, a long-term partner in the region with a proven track record. ”
Gregory Clerc, Castel Chief Executive Officer, said:
“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.”
Immediately following completion of this transaction, Guinness Ghana will remain listed on the Ghanian Stock Exchange.
Completion of the transaction is expected this calendar year subject to the satisfaction of regulatory approvals.
NKONKONSA.com
