Diageo sells Guinness Ghana to Castel for $81m

Diageo plc has announced the sale of its 80.4% shareholding in Guinness Ghana Breweries plc to French beverage giant Castel Group for $81 million, further strengthening their partnership across Africa.

Despite the sale, Diageo will retain ownership of the Guinness brand and other key products currently produced by Guinness Ghana. Under a new long-term licensing and royalty agreement, Guinness Ghana will continue to brew and distribute Guinness and other Diageo beverages, ensuring the brand’s sustained presence and growth in the Ghanaian market. Diageo will also oversee brand strategy and marketing in collaboration with Castel.

The transaction aligns with Diageo’s asset-light beer operating model, designed to enhance efficiency and profitability by adapting its business structure to local markets.

Commenting on the deal, Dayalan Nayager, President of Diageo Africa and Chief Commercial Officer, expressed confidence in Guinness Ghana’s continued success. “Guinness Ghana is performing strongly, powered by a fantastic team. Through this transaction, I look forward to Guinness continuing to thrive. We are excited to extend our partnership with Castel, a trusted long-term partner with a proven track record,” he said.

By leveraging Castel’s extensive distribution network and market expertise in West and Central Africa, Diageo aims to drive sustainable growth for its brands in Ghana. Castel, which already collaborates with Diageo in 11 African markets, views this acquisition as a strategic expansion.

Gregory Clerc, CEO of Castel Group, emphasized the company’s commitment to the region. “This acquisition is a testament to Castel’s entrepreneurial spirit. We are proud to enter our 22nd African market, reaffirming our confidence in the continent’s potential,” he stated.

Under the new licensing arrangement, Guinness Ghana will continue to produce and distribute popular Diageo brands, including Malta Guinness, Orijin, Smirnoff Ice, Alvaro, and mainstream spirits.

The sale follows a series of strategic moves by Diageo in Africa, including the September 2024 divestment of its shareholding in Guinness Nigeria plc to Tolaram and the October 2023 launch of a dedicated spirits company to expand its premium spirits business in West Africa. Additionally, in July 2022, Diageo sold Guinness Cameroon to Castel, further consolidating its partnerships in the region.

Diageo maintains a strong presence in Africa through key operations such as East African Breweries Limited, covering Kenya, Tanzania, and Uganda, as well as Diageo South West Central, alongside strategic distribution partnerships in 34 African countries.

Guinness Ghana will remain listed on the Ghana Stock Exchange. The completion of the deal is expected in 2025, pending regulatory approval