Diageo has announced the sale of its 80.4% stake in Guinness Ghana Breweries to French beverage giant Castel Group for $81 million. The deal marks a strengthening of the longstanding partnership between the two companies 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 licensing and royalty agreement, Guinness Ghana will continue to brew and distribute Diageo’s brands, including Guinness, Malta Guinness, Orijin, Smirnoff Ice, and Alvaro, ensuring their ongoing presence in the Ghanaian market.

Diageo has said the move is part of its broader strategy to adopt a more flexible, asset-light model for its beer operations. The company aims to increase efficiency and profitability by adapting its business structure to different local markets. By leveraging Castel’s extensive distribution network in West and Central Africa, Diageo intends to drive further growth in the region.

Castel, which already partners with Diageo in 11 other African markets, will now take on responsibility for producing and distributing these products in Ghana. The transaction follows Diageo’s previous sale of its stake in Guinness Nigeria in 2024 and its launch of a dedicated spirits company in West Africa last year.

Diageo will continue to maintain control over brand strategy and marketing for its products in collaboration with Castel. The sale is expected to be completed in 2025, subject to regulatory approvals.

Dayalan Nayager, President of Diageo Africa, expressed confidence that the deal would allow Guinness Ghana to continue thriving under the leadership of its strong team, while expanding Diageo’s presence in Africa.

Gregory Clerc, CEO of Castel Group, highlighted the acquisition as part of Castel’s broader expansion strategy in Africa, its 22nd market on the continent.

Guinness Ghana will remain listed on the Ghana Stock Exchange following the completion of the deal.

Source:TheDotNews