Diageo has agreed to sell its Guinness brewing operations in Cameroon to French beverage company Castel Group for £389 million.
The deal will see Castel take over the production and distribution of the Irish stout brand and will provide a platform for Guinness’ expansion via Castel’s five brewing sites and national distribution network.
Dayalan Nayager, president of Diageo Africa, said: “Guinness has outgrown its existing brewery in Douala as a result of its strong performance. Under this new agreement, the brand will have both expanded brewing capacity and distribution.
It will remain part of the global Guinness family through direct marketing oversight. We look forward to unlocking even greater potential through this agreement with Castel, ensuring we continue to have great tasting Guinness across Cameroon.”
Gil Martignac of Castel added: “This acquisition expands the company’s portfolio in the strategic stout market and strengthens its historical partnership with Diageo in many other markets. Guided by its entrepreneurial spirit, Castel continues its growth momentum and its commitment to promoting the economic and social vitality of Cameroon and the African continent.”
The transaction is expected to be completed in the first half of Diageo’s fiscal 2023.
