Diageo sells 80.4% stake in Guinness Ghana to Castel Group for $81M
Diageo has finalized the sale of its 80.4% stake in Guinness Ghana Breweries to Castel Group for $81 million, further strengthening its collaboration with the French beverage giant in Africa.
Despite relinquishing majority ownership, Diageo will maintain control of the Guinness brand and other key Diageo products currently manufactured by Guinness Ghana.
Under a newly established long-term licensing and royalty agreement, Guinness Ghana will continue brewing and distributing Guinness and other Diageo beverages, ensuring their continued growth and market presence. Diageo will also oversee brand strategy and marketing efforts in partnership with Castel.
This strategic decision aligns with Diageo’s asset-light beer operating model, which enables the company to optimize its business structure in different local markets for enhanced efficiency and profitability.
By leveraging Castel’s well-established distribution network and operational expertise in West and Central Africa, Diageo aims to drive sustainable growth for Guinness and other key brands in Ghana. Castel, already a partner of Diageo in 11 other African markets, has a strong track record in the region. Under the new licensing framework, Guinness Ghana will continue to produce and distribute popular Diageo brands, including Malta Guinness, Orijin, Smirnoff Ice, Alvaro, and mainstream spirits.
According to Diageo, this move is part of a broader portfolio management strategy in Africa. It follows the September 2024 sale of Diageo’s shareholding in Guinness Nigeria 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 regional partnerships.
Diageo maintains a strong presence in Africa, with major operations in East African Breweries Limited (Kenya, Tanzania, and Uganda) and Diageo South West Central, along with strategic distribution partnerships in 34 African nations.
Dayalan Nayager, President of Diageo Africa and Chief Commercial Officer, expressed optimism about the transition:
“Guinness Ghana has demonstrated strong performance, driven by a remarkable team. Through this transaction, I am confident that Guinness will continue to flourish. We are thrilled to deepen our collaboration with Castel, a trusted long-term partner with a proven success record.”
Gregory Clerc, CEO of Castel Group, emphasized the company’s growth ambitions:
“This acquisition reflects Castel’s entrepreneurial vision. We are excited to expand into our 22nd African market, reinforcing our confidence in the continent’s immense potential.”
Following the transaction, Guinness Ghana will remain listed on the Ghana Stock Exchange. The deal is expected to be finalized in 2025, pending regulatory approvals.