Diageo plc sells its shares in Guinness Ghana Breweries plc to Castel Group

Diageo plc has sold its 80.4% shareholding in Guinness Ghana Breweries plc to Castel Group.

A statement announcing this said regardless of the sale, “Diageo will retain ownership of the Guinness brand, 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 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”.

Read Statement Below

Today, Diageo plc, announces the sale of its 80.4% shareholding in Guinness Ghana Breweries plc to Castel Group, building on its relationship with Castel as a partner in Africa.

Diageo will retain ownership of the Guinness brand, 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 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.

Diageo’s flexible and asset-light beer operating model allows it to select the most appropriate structure and route-to-market based on local conditions, supporting greater efficiency and profitability, while Diageo continues to drive the brand and marketing strategy.

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, 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.

This announcement follows the sale in September 2024 of Diageo’s shareholding in Guinness Nigeria plc to Tolaram to accelerate the growth of Guinness in Nigeria; 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. Diageo is present in 34 countries with strategic beer and spirits distributors.

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 22^nd 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.

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