
For $81 million, Diageo, the parent company of Guinness Ghana Breweries, has agreed to sell the French beverage conglomerate Castel Group its 80.4% stake in the business.
Diageo will continue to manufacture under license from Guinness Ghana, but it will maintain ownership of the Guinness brand and other related products going forward.
This action is in line with Diageo’s plan to implement an “asset-light” model in Africa, emphasizing brand ownership while collaborating with regional companies on distribution and production.
Diageo has sold off its holdings in Guinness Nigeria and Guinness Cameroon, among other African markets, in recent years.
Founded in 1949, Castel Group is a major force in the beverage industry, especially in Africa, where it controls a sizeable portion of the beer market.
It is anticipated that this acquisition will improve Castel’s market share in Ghana and solidify its place in the African beverage industry.
Otumfuo Osei Tutu II, the Asantehene, says he hopes the buyer of Guinness Ghana is a wise investor.
As Castel Group buys the 80.4% stake in Guinness Ghana Breweries PLC (GGBL) from parent company Diageo PLC, His Majesty says he hopes the company will prove to be a worthy investor.
The Asantehene received formal notice of the upcoming ownership reforms on January 31, 2025, during a meeting with Guinness Ghana’s management.
Dr. Felix E. Addo, the beverages company’s chairman, stated that procedures are in place to obtain regulatory approval in order to formally announce the new agreement.
In the next four months, he expects all the formalities to be completed.
Dr. Addo stated that since Diageo will be licensing them to operate under a long-term license and royalty agreement, the reforms will not have an impact on the Guinness brand or the caliber of their products.
He stated that only the final stage of production and distribution, which will be turned over to the Castel Group, will be impacted by the changes.
“The basic Guinness, Star and Malta Guinness and all the brands we have here will still be the same in terms of quality, production and all. What will change will be capacity the new investment which we are expected to come not only to Kaase but the whole Guinness Ghana.”
“We’ve got a new investor called Castel Group. They are French and they are the second largest wine growing and wine distribution company in the whole world. They have bought out shares from Diageo which owns 80.4% of shares from Guinness Ghana. They are represented in about 21 countries in Africa.
“They have about 640 production points all over Africa. They are the biggest player on the African soil and we are glad that they have shown interest in acquiring our Guinness shares.”
Asantehene reaffirmed his wish to see the Kaase branch in Kumasi grow rapidly and added that he was hoping to find an investor who would prioritize the expansion that Diageo was unable to accomplish.
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He believes that this must result in more jobs being created for his people.
“What I’m hearing means that I have a future for Guinness. I’m aware that the new investor is buying over 80% shares. I hope that it will be a good investor. The investment here in Kumasi is so dear to my heart and you know that. It’s been here for years….I’m looking forward to long term relationship where this company will do well.
“The investment should manifest in relation to how we expand the plant here because I know that if you are outgrowing your production, then it has to expand. If the reason is that Diageo is not prepared and someone is buying, I suppose we need to see an expansion and continuity that will lead to creation of more employment.”
Additionally, His Majesty urged investment in training employees to assume leadership roles and manage the business.
He asserts that Ghanaians are capable and just need the necessary technical and technological instruction to succeed.
“The future belongs to my people in relation to running this company.”