Diageo has moved to end media speculation that it is planning to sell its Guinness beer brand, or its 34 per cent stake on Moët Hennessy.
The rumour mill swung into action late last week with Bloomberg News reporting that Diageo was looking to cash in on the strong growth that Guinness has enjoyed in recent years. The popular Irish stout brand has seen double-digit growth every year since 2021, and has also benefitted from the global moderation trend, as it’s Guinness Draught 0.0 recording strong growth.
While it is more commonplace for listed companies not to comment on media reports, a statement from Diageo on Friday said: “We note the recent media speculation around the Guinness brand and our stake in Moët Hennessy and we can confirm that we have no intention to sell either.
“We will next update the market with Interim results on 4 February 2025 and we look forward to hosting our Guinness investor and analyst day on 19/20 May 2025.”
It is possible that the rumour mill was slightly misinformed in its Guinness sale predictions, as Diageo yesterday announced the sale of its 80.4 per cent shareholding in Guinness Ghana Breweries plc to Castel Group.
Diageo said this sale will build on its relationship with Castle as a partner in Africa, and that Diageo will retain ownership of the Guinness brand.
The statement on the Castel sale said: “Diageo will continue to drive the brand and marketing strategy for the iconic Guinness brand, in partnership with Castel, to promote continued growth and development in the country.”
Dayalan Nayager, Diageo’s President Diageo Africa and Chief Commercial Officer, said: “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, Castel Chief Executive Officer, added: “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.”
This announcement follows the sale in September 2024 of Diageo’s shareholding in Guinness Nigeria plc to Tolaram to accelerate the growth of Guinness in Nigeria; the announcement in October 2023 of a wholly-owned dedicated spirits company to strengthen Diageo’s international premium spirits business and serve a wider geographic reach across West Africa; and the sale of Guinness Cameroon to Castel in July 2022.