Guinness Cameroon (GCSA) passes under the flag of the Société anonyme des brasseries du Cameroun (SABC), a subsidiary of the Castel group. The British Diageo, parent company of GCSA, announced on July 14 that it had reached an agreement for the sale of its subsidiary. The operation, the amount of which is estimated at 459.8 million dollars (458.9 million euros) according to Reuters, remains subject to the agreements of the competent authorities, say the two parties in a joint press release.
In addition to the Ndokoti brewery, in Douala, what recovers, SABC will in future be responsible for producing the British group’s beers, alcohol mixes and malt drinks at its five other production sites and selling them via its network, which at the end of 2021 brought together some 180 distributors for more than 100,000 points. of sale.
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This absorption will thus make it possible to extend the presence of the English brand on the Cameroonian market, by taking advantage of the network of the territory of the subsidiary of the French group. The needs of Guinness Cameroon “exceed the capacities of its current brewery in Douala. Thanks to this new agreement, the brand will benefit from new increased production and distribution capacities,” says Dayalan Nayager, President of Diageo Africa.
“Guinness marketing in Cameroon will continue to be managed by the Guinness Global Brand Team, which will define the strategy with Diageo’s dedicated resources locally and in collaboration with SABC,” the statement added.
The acquisition of Guinness Cameroon by SABC also consolidates a partnership history between the two groups. Castel has been producing and distributing products from the British group on the Gabonese, Guinean, Ivorian, Congolese and Beninese markets for decades. In January, its subsidiary, Brasseries et Glacières Internationales (BGI), bought the Ethiopian Meta Abo Brewery from Diageo.
After having broken with the American Coca-Cola, the French group is consolidating its leadership in Cameroon. The operation allows SABC, 80% owned by the Castel group and which achieved a consolidated turnover of 691 billion F CFA (1 billion euros) last year, to control 80% of the beverages, compared to more than 70% market share currently. The rest goes to the Union camerounaise des brasseries (UCB, Kadji group), Brasseries Foyou Samuel (Brasaf, Foyou group), and Source du pays.
The upcoming sale of the Cameroonian brewery reduces Diageo’s industrial units to twelve on the continent, mainly based in Ghana, Nigeria, Seychelles and Africa from Sud.