Diageo has agreed to sell its 80.4% stake in Guinness Ghana Breweries to Castel Group for $81M. The London-based drinks giant says the move will drive “greater efficiency and profitability” in Africa.
The buyer
Castel Group, already a key player in Africa, owns Guinness Cameroon and partners with Diageo in 11 other African markets.
What changes:
- Diageo will retain ownership of the Guinness brand and other labels produced by Guinness Ghana, licensing them to Castel under a new long-term agreement.
- This aligns with Diageo’s “asset-light” beer strategy, focusing on local market efficiencies while driving brand and marketing strategies globally.
What they’re saying
- Dayalan Nayager, Diageo Africa President: “Guinness Ghana is performing strongly, and this transaction ensures the Guinness brand will continue to thrive under a proven partner like Castel.”
- Diageo emphasized the deal reflects its broader strategy to adapt its operations to local market conditions.
The context
This is the latest in a series of moves by Diageo in West Africa:
- In 2024, it sold its stake in Guinness Nigeria to Tolaram Group.
- In 2023, it set up a dedicated spirits company for the region.
Zoom out
The sale comes amid speculation about Diageo’s broader plans for its Guinness brand, following reports of a potential spin-off or sale. Diageo has denied the rumors, emphasizing its commitment to the brand.
Source: The Grocer
