In a strategic move to optimize its operations in West Africa, Diageo plc has announced the sale of its 80.4% shareholding in Guinness Ghana Breweries plc to the Castel Group. This decision aligns with Diageo’s ongoing strategy to adopt a more flexible, asset-light operating model in the region.
Under the terms of the agreement, Diageo will retain ownership of the Guinness brand and other associated products currently produced by Guinness Ghana. These brands will continue to be manufactured locally under a new long-term license and royalty agreement. Diageo will also maintain its role in driving the brand and marketing strategy for Guinness in Ghana, collaborating closely with Castel to ensure sustained growth and development.
The Castel Group, a prominent player in the beverage industry across West and Central Africa, brings extensive expertise to this partnership. Already a partner with Diageo in 11 other African markets, Castel’s acquisition of Guinness Ghana marks its 22nd operation on the continent. Gregory Clerc, Castel’s Chief Executive Officer, remarked, “This acquisition exemplifies the entrepreneurial spirit that drives Castel and marks a new milestone in our growth ambition.”
This transaction is part of Diageo’s broader strategy of active portfolio management in West Africa. In September 2024, Diageo sold its 58.02% shareholding in Guinness Nigeria plc to Tolaram Group, a Singapore-based conglomerate with a significant presence in Nigeria. Similar to the Ghana deal, Diageo retained ownership of the Guinness brand in Nigeria, entering into long-term license and royalty agreements with Tolaram. This approach allows Diageo to focus on brand development while leveraging local partners’ manufacturing and distribution expertise.
The sale of its stakes in Ghana and Nigeria reflects Diageo’s commitment to building an efficient operating model in West Africa, structured to deliver long-term and sustainable growth. By partnering with established local entities like Castel and Tolaram, Diageo aims to enhance the reach and performance of its iconic brands while adapting to the dynamic market conditions of the region.
Completion of the Guinness Ghana transaction is expected within the current calendar year, subject to regulatory approvals. Following the sale, Guinness Ghana will remain listed on the Ghanaian Stock Exchange, ensuring continuity for investors and stakeholders.
These strategic partnerships underscore Diageo’s flexible approach to market entry and expansion in Africa, allowing the company to maintain brand stewardship while optimizing operational efficiency through collaboration with experienced local partners.
