Quick Read: Diageo has sold an 80.4% stake in Guinness Ghana to Castel Group for $81 million, marking a significant shift in its business strategy. Despite the sale, Diageo will retain ownership of the Guinness brand and continue its marketing oversight under a licensing agreement. The deal is still subject to regulatory approvals and is expected to be completed within the year.
Diageo plc has announced the sale of its 80.4% stake in Guinness Ghana Breweries plc to Castel Group. The deal, disclosed on January 28, 2025, is valued at $81 million and strengthens the partnership between the two companies.
Key Details of the Transaction
- Diageo will retain ownership of the Guinness brand and other Diageo brands currently produced by Guinness Ghana.
- These brands will be licensed to Guinness Ghana under a long-term agreement.
- Diageo will continue overseeing brand and marketing strategies for Guinness in collaboration with Castel.
- The deal is subject to regulatory approvals and is expected to close within 2025.
- Guinness Ghana will remain listed on the Ghanaian Stock Exchange.
Diageo Africa President’s Statement
Dayalan Nayager, President of Diageo Africa and Chief Commercial Officer, praised Guinness Ghana’s strong performance, stating:
“Guinness Ghana is thriving, thanks to an outstanding team. Through this transaction, I look forward to the Guinness brand continuing to grow. I am excited to extend our partnership with Castel, a trusted partner with a solid track record in the region.”
Castel Group’s Perspective
Gregory Clerc, Chief Executive Officer of Castel, emphasized the company’s commitment to growth, stating:
“This acquisition reflects Castel’s entrepreneurial spirit and marks a significant milestone in our expansion. We are eager to explore new opportunities across the continent.”
Diageo’s Recent Divestments
This sale follows Diageo’s September 2024 divestment of its 58.02% stake in Guinness Nigeria plc to Tolaram for N104 billion. The agreement included long-term licensing and royalty arrangements, ensuring continued production, marketing, and sales of the Guinness brand in Nigeria.
Following the completion of the Nigeria transaction, Guinness Nigeria’s Board Chair, Dr. Omobola Johnson, shared her optimism:
“The Board, Management, and employees of Guinness Nigeria are excited about the future. Tolaram’s vast experience in Nigeria presents tremendous opportunities for growth.”
Conclusion
Diageo’s sale of its Guinness Ghana stake to Castel highlights its strategic shift while reinforcing its presence in Africa through partnerships. As regulatory approvals move forward, both companies are poised for continued success in the beverage industry.
