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Diageo sells majority of shares in Guinness Ghana Breweries

Diageo has sold 80.4% shareholding in Guinness Ghana Breweries to Castel Group in a deal worth US$81 million.

Diageo will still retain ownership of the Guinness brand, while other Diageo brands currently produced by Guinness Ghana – such as (Guinness, Malta, Orijin, Smirnoff Ice and Alvaro) will be “licensed to Guinness Ghana under a new licence and royalty agreement”.

The decision will see Diageo continue to drive the brand and marketing strategy for Guinness, but in partnership with Castel. A move that it hopes will assist in boosting its presence in Africa.

Diageo recently poured cold water on rumours of an £8bn sale of its Irish stout following days of speculation after Bloomberg first reported on rumoured plans.

The news also follows the sale of Diageo’s shareholding in Guinness Nigeria to Tolaram last September which had been planned as a way to accelerate the growth of Guinness in Nigeria. It also follows 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. Additionally, it also follows the sale of Guinness Cameroon to Castel in July 2022.

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Diageo’s footprint across Africa consists of East African Breweries Limited (Kenya, Tanzania and Uganda) and Diageo South West Central. At present, Diageo is present in 34 countries with strategic beer and spirits distributors.

Speaking about the sale of the shares, Diageo Africa president and chief commercial officer Dayalan Nayager 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. ”

Castel chief executive officer, Gregory Clerc added: “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.”

Following completion of the transaction, which is subject to regulatory approvals, Guinness Ghana will remain listed on the Ghanian Stock Exchange.

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