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Spencer Wan Blog of Wednesday, 29 January 2025

Source: Eric Afatsao

Diageo pays Castel Group $81 million for an 80.4% share in Guinness Ghana.

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With the announcement that it will sell its 80.4% stake in Guinness Ghana Breweries plc to Castel Group for $81 million, Diageo plc is solidifying its alliance with the French beverage juggernaut throughout Africa.

Guinness and other Diageo beverages will continue to be brewed and distributed by Guinness Ghana under a new long-term license and royalties deal, guaranteeing the brand's continued growth and presence in the Ghanaian market. Additionally, Diageo will continue to work with Castel to maintain control over marketing and brand development.

This action is in line with Diageo's asset-light, adaptable beer operating model, which enables the company to better optimize its business structure for various local markets.

Guinness and its other brands in Ghana are expected to experience consistent growth thanks to Diageo's utilization of Castel's vast distribution network and knowledge of West and Central Africa. With a solid track record in the region, Castel is already a Diageo partner in 11 other African markets.


Popular Diageo brands, such as Malta Guinness, Orijin, Smirnoff Ice, Alvaro, and mainstream spirits, will still be produced and distributed by Guinness Ghana under the new licensing agreement.

A article on Diageo's website claims that this deal is a component of the company's larger portfolio management plan for Africa.

It follows the September 2024 sale of Diageo’s shareholding in Guinness Nigeria plc 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 its regional partnerships.

Diageo continues to have a strong presence in Africa, with key operations in East African Breweries Limited (Kenya, Tanzania, and Uganda) and Diageo South West Central, alongside strategic distribution partnerships in 34 African countries.

Dayalan Nayager, President of Diageo Africa and Chief Commercial Officer, expressed confidence in the transition:

“Guinness Ghana is performing strongly, powered by a fantastic team. Through this transaction, I look forward to Guinness continuing to thrive. We are excited to extend our partnership with Castel, a trusted long-term partner with a proven track record.”

Gregory Clerc, CEO of Castel Group, highlighted the company’s commitment to expansion:

“This acquisition is a testament to Castel’s entrepreneurial spirit. We are proud to enter our 22nd African market, reaffirming our confidence in the continent’s potential.”

Following the transaction, Guinness Ghana will remain listed on the Ghana Stock Exchange. Completion of the deal is expected within 2025, pending regulatory approvals.