Diageo Sells 80.4% Stake in Guinness Ghana Breweries to Castel Group for $81million: To Retain Control Over Brand Strategy
Recently, Brand Communicator reported that Diageo had sold its 80.4% Stake in Guinness Ghana Breweries to Castel Group for $81million. The sale agreement will preserve Diageo’s asset-light beer operating model.
Under the new long-term licencing and royalty arrangement, Diageo will retain control over the Guinness brand and other brands. It will also see Guinness Ghana will continue producing and distributing brands such as; Malta Guinness, Orijin, Smirnoff Ice, Alvaro, and mainstream spirits.
The long-term licensing and royalty agreement between Guinness Ghana and Castel will ensure the brewing and distribution of 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 deal leverages on the expanded long-term partnership with Castel, and 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”, according to Diageo’s website.
We recall the similar sale in September 2024 of Diageo’s shareholding in Guinness Nigeria plc to Tolaram, justified to accelerate the growth of Guinness in Nigeria. Diageo had announced in October 2023 on the need for a wholly-owned dedicated spirits company to strengthen Diageo’s international premium spirits business and serve a wider geographic reach across West Africa. Similarly, and there was a 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, says the statement on Diageo’s website.
Sharing his perspective to 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. ”
Castel Chief Executive Officer, Gregory Clerc, 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 22nd African country, we reaffirm our dynamism, our boldness, and our confidence in Africa’s potential.”
Guinness Ghana will remain listed on the Ghanaian Stock Exchange, and the transaction is still subject to the satisfaction of regulatory approvals, in order to be complete.
Slaughter and May London advised Diageo on the deal.
About Castel
Castel is the largest French wine producer and owns the biggest French and foreign wine brands distributed in France. Castel Group is also the French leader for table wines and the number four for beers and soft drinks in Africa (after SABMiller, Heineken N.V., and Guinness), and—after Constellation Brands and Gallo—number four for wine worldwide. Castel claims to have a 25 percent share of profits from the African beer market.
