Global beverage giant Diageo plc has announced the sale of its 54.4% shareholding in Seychelles Breweries Limited to Phoenix Beverages, a Mauritius-based subsidiary of the IBL Group for approximately $80 million. The transaction marks the latest in a series of divestments across Africa as Diageo continues its strategic push to streamline operations and focus on core brand and distribution capabilities.
Strengthening Regional Partnerships
The deal builds on Diageo’s existing partnership with Phoenix Beverages, which has long been its production and distribution partner in Mauritius. Under the agreement, Diageo will retain ownership of its flagship brands—including Guinness and Smirnoff ready-to-drink (RTD) products—currently produced by Seychelles Breweries. These brands will be licensed to Seychelles Breweries under a new long-term license and royalty agreement, with Diageo continuing to manage their in-market distribution.
This move, according to Diageo, reflects an effort to build an efficient, sustainable operating model in the Indian Ocean Islands, one focused on long-term growth through local partnerships.
Executive Perspectives
Dayalan Nayager, President of Diageo Africa and Chief Commercial Officer, commented on the transaction:
“I am excited to extend our successful partnership with Phoenix Beverages, a long-term partner in the Indian Ocean region, to further unlock value for Seychelles Breweries and deliver long-term sustainable growth.”
Arnaud Lagesse, Chairman of Phoenix Beverages, emphasized the broader vision:
“Our investment in Seychelles Breweries aligns with our ‘IBL Beyond Borders’ strategy. It’s not just about expansion—it’s about creating lasting value and deepening our leadership in the Indian Ocean beverage landscape.”
Following the completion of the deal, Seychelles Breweries Limited will remain listed on the Seychelles Stock Exchange, maintaining its local market presence. The transaction is expected to close by June 2025.
A Broader Strategic Shift in Africa
This sale is part of Diageo’s broader divestment strategy across Africa, which has seen the company restructure or exit several majority-owned subsidiaries over the past two years to focus on scalable, brand-led models.
Recent Diageo Divestments in Africa:
- Sale of 58% Stake to Tolaram Group (2024):
Diageo sold its majority shareholding in Guinness Nigeria to Tolaram, a diversified African conglomerate. The move enabled Guinness Nigeria to operate under a new joint venture model, with Diageo retaining brand control and licensing rights. - Sale of 80.4% shareholding in Guinness Ghana Breweries plc to the Castel Group (2024)
Diageo sold 80.4% shareholding in Guinness Ghana Breweries plc to the Castel Group. Diageo retains ownership of the Guinness brand and other associated products currently produced by Guinness Ghana
These moves demonstrate Diageo’s commitment to active portfolio management and its ambition to focus on brand ownership and route-to-market excellence, rather than capital-intensive manufacturing and direct operations.
