Diageo sells 80.4% stake in Guinness Ghana to Castel Group for $81M

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

Despite the sale, Diageo will retain ownership of the Guinness brand and other key Diageo 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 maintain control over brand strategy and marketing in collaboration with Castel.

This move aligns with Diageo’s flexible, asset-light beer operating model, which allows the company to tailor its business structure to different local markets for greater efficiency and profitability.

By leveraging Castel’s extensive distribution network and expertise in West and Central Africa, Diageo aims to drive sustainable growth for Guinness and its other brands in Ghana. Castel is already a Diageo partner in 11 other African markets and has a strong track record in the region.

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.

According to a report on Diageo’s website, this transaction is part of it’s broader portfolio management strategy in Africa.

It follows the September 2024 sale of Diageo’s 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 regional partnerships.

Diageo continues to have a strong presence in Africa, with key operations in East African Breweries Limited (Kenya, Tanzania, and Uganda) and Diageo South West Central, alongside strategic distribution partnerships in 34 African countries.

Dayalan Nayager, President of Diageo Africa and Chief Commercial Officer, expressed confidence in the transition:

“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.”

Gregory Clerc, CEO of Castel Group, highlighted the company’s commitment to expansion:

“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.”

Following the transaction, Guinness Ghana will remain listed on the Ghana Stock Exchange. Completion of the deal is expected within 2025, pending regulatory approvals.

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