Castel Group takes on production of some Diageo spirits
Castel Group will produce several Diageo-owned spirits brands under a new licensing agreement, after Diageo sold its majority stake in Guinness Ghana Breweries.
Diageo sold its 80.4% stake in Guinness Ghana to French wine company Castel Group for US$81 million.
Under the new licence and royalty agreement, Castel Group will continue to produce Diageo spirits labels such as Orijin, Smirnoff Ice, and other mainstream brands. This will allow Diageo to maintain control over brand management and marketing strategies in partnership with Castel Group.
Castel Group works across West and Central Africa and is a partner of Diageo in 11 other African markets.
Once the transaction is complete, Guinness Ghana will remain on the Ghanaian Stock Exchange.
Dayalan Nayager, president Diageo Africa and chief commercial officer, said: “Guinness Ghana is performing strongly powered by a fantastic team of people.
“I am excited to extend our partnership with Castel, a long-term partner in the region with a proven track record.”
The transaction comes hot on the heels of rumours about a potential Guinness brand sale that have flooded the media over the past week, which Diageo denied.
There was also speculation Diageo would sell its minority share in Moët Hennessy, the wine and spirits arm of LVMH, which the group also refuted.
Earlier this month, Diageo sold Venezuelan rum brand Cacique to French drinks producer La Martiniquaise-Bardinet.
The deal came six months after Diageo offloaded Venezuelan rum brand Pampero to Italian drinks company Gruppo Montenegro.
Diageo reported flat organic net sales for its full financial year, which ended on 30 June 2024. Sales of Diageo’s Casamigos Tequila fell by 20%.
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