Diageo is letting go of its Cameroon brewing location after agreeing to sell to the Castel Group for £389 million (over $461 million).
Under the deal, Castel will acquire the production facility in the central-African country and will produce Guinness under the same branding. The deal also includes distribution in Cameroon, while Diageo will retain licensing and royalty rights.
The manufacturing location sits in Douala, the largest city and commerce center in the country. In a July 13 press release, Diageo states that the acquisition will allow Guinness continued growth and a widened capacity for production.
This Guinness manufacturing plant will accompany Castel Group’s five other brewing locations in Cameroon, as well as its already locally established network for retail distribution across the country. The deal will be completed in the first half of 2023, according to the press release.
“This acquisition expands the company’s portfolio in the strategic stout market and strengthens its historical partnership with Diageo in many other markets,” Castel board member Gil Martignac states in the press release. “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.”
While Castel Group will hold production in Cameroon, Guinness Global Brand Team will still manage marketing materials. The advertising team will collaborate between the two corporations.
This news is just part of Diageo’s international moves this week, as the spirits corporation announced plans on Thursday for a €200 million (nearly $202 million) investment in a carbon-neutral brewery in Ireland.