Table of Contents
Key Points
- Castel Group acquires 80.4% of Guinness Ghana for $81 million, expanding its presence in West Africa after its Algerian acquisition of Alver Spa.
- The acquisition strengthens Castel’s partnership with Diageo, who retains the Guinness brand while Castel handles production and marketing in Ghana.
- Guinness Ghana will remain listed on the Ghana Stock Exchange, with Diageo’s brands continuing under new licensing and royalty agreements.
Two years after Castel Group, the French beverage giant founded by Pierre Castel, acquired Alver Spa from Condor Electronics, an electronics equipment manufacturer founded by Algerian businessman Abderrahmane Benhamadi, the company is now turning its attention to Ghana.
The French conglomerate has taken a significant step by purchasing an 80.4 percent stake in Guinness Ghana Breweries Plc from Diageo Plc for $81 million. This move is part of Castel’s broader strategy to expand its presence across Africa, having already established itself in North, West, and Central Africa.
The acquisition follows Castel’s 2023 purchase of Alver Spa, an Algerian manufacturer of glass bottles and jars used in the food and beverage industries. Alver Spa, originally owned by Abderrahmane Benhamadi’s Condor Electronics, plays a key role in local packaging solutions.
Castel's regional strategy expands further
Castel's recent acquisition of Guinness Ghana is a pivotal move to solidify its position in the country, leveraging its deep experience across Africa. Already a strong partner with Diageo, Castel operates in 11 other African markets, making this acquisition a strategic extension of their collaboration.
Under the new long-term licensing agreement, Diageo will continue to own the Guinness brand and other products brewed in Ghana. However, Castel will manage production and marketing of these products in the local market. Together, the two companies will work on initiatives aimed at boosting growth in Ghana.
This partnership underscores Diageo’s ongoing efforts to manage its portfolio in a way that supports long-term, sustainable growth in West Africa. It highlights their commitment to adapting their strategy for the region’s evolving opportunities.
Dayalan Nayager, President of Diageo Africa, expressed his enthusiasm for the deal, saying, “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..”
Gregory Clerc, CEO of Castel, echoed this sentiment, noting, “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.”
Guinness Ghana retains market listing
Pending regulatory approval, the deal is expected to close later this year. Once finalized, Guinness Ghana will remain listed on the Ghana Stock Exchange. Diageo's brands produced by Guinness Ghana, including Guinness, Malta, Orijin, Smirnoff Ice, Alvaro, and various spirits, will continue under new license and royalty agreements.
The acquisition follows other recent strategic moves by Diageo, such as the sale of its stake in Guinness Nigeria to Tolaram in September 2024, aimed at accelerating growth in Nigeria. Other steps include the creation of a new spirits company in October 2023 to bolster its premium spirits business in West Africa and the sale of Guinness Cameroon to Castel in July 2022.
Diageo’s footprint spans across East African Breweries Limited in Kenya, Tanzania, and Uganda, as well as Diageo South West Central. With a presence in 34 African countries, Diageo is collaborating with key distributors in the beer and spirits sectors to expand its reach across the continent.
