Diageo Sells its 80.4% Shareholding in Guinness Ghana Breweries for $81 Million
Global beverage giant Diageo plc has announced the sale of its 80.4% shareholding in Guinness Ghana Breweries Plc (GGB) to Castel Group, strengthening its partnership with Castel across Africa.
Despite the divestiture, Diageo will retain ownership of the Guinness brand and other Diageo products currently manufactured by Guinness Ghana. Under a newly established long-term licensing and royalty agreement, Guinness Ghana will continue to produce these beverages while Diageo maintains control over the brand’s marketing strategy in collaboration with Castel.
Diageo’s asset-light beer operating model is designed to optimize efficiency and profitability by selecting appropriate operational structures and market routes tailored to local conditions. The company has been actively managing its portfolio to build a more efficient and sustainable growth model in West Africa.
Castel Group, which has extensive experience across West and Central Africa, is already a key partner for Diageo in 11 other African markets. The acquisition of Guinness Ghana further cements Castel’s presence in the region, allowing it to leverage its expertise to drive growth in Ghana’s beverage sector.
Under the new agreement, all Diageo brands currently produced by Guinness Ghana—including Guinness, Malta, Orijin, Smirnoff Ice, Alvaro, and mainstream spirits—will continue to be manufactured under licensing arrangements.
This move aligns with Diageo’s broader restructuring efforts in Africa, following its September 2024 sale of Guinness Nigeria to Tolaram and the October 2023 establishment of a wholly-owned spirits company aimed at expanding its premium spirits business in West Africa. Additionally, in July 2022, Diageo sold Guinness Cameroon to Castel Group, further illustrating its evolving operational strategy on the continent.
Speaking on the transaction, Dayalan Nayager, President of Diageo Africa and Chief Commercial Officer, stated, “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.”
Echoing similar sentiments, Castel CEO Gregory Clerc remarked, “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.”
Despite the sale, Guinness Ghana Breweries will remain listed on the Ghana Stock Exchange. The transaction is expected to be completed within the year, subject to regulatory approvals.
