Diageo is reportedly undertaking a strategic review of its 65% holding in East African Breweries, following a recent reassessment of its brewing operations in Africa.
A Bloomberg report yesterday (28 July) said the Johnnie Walker brand owner has engaged Bank of America and Goldman Sachs to conduct the evaluation, which may include a sale of the Kenya-based subsidiary. The publication’s sources who are “familiar with the matter” said a sale of solely the publicly-listed beer business could be valued at circa US$2bn, with the likes of Heineken, Castel Group and AB InBev tipped as potential buyers.
Diageo declined to comment when approached by Global Drinks Intel.
EAB’s footprint in Africa is concentrated in its home market, along with Tanzania and Uganda, although its products “are sold in more than ten countries across Africa and beyond”, Diageo said when it upped its stake from 50.03% to 65% in 2022. Best known for the Tusker lager brand, the company also handles the likes of Captain Morgan, Johnnie Walker and Smirnoff for Diageo.
The African offload would follow Diageo’s sale of its majority stake in Guinness Ghana Breweries to Castel Group for a fee of US$81m in January, as well as divestments of its stakes in Guinness Nigeria and Guinness Cameroon in 2024 and 2022 respectively, with the Guinness Cameroon holding also having been acquired by Castel.
Seven months earlier, in January 2022, Diageo also sold Meta Abo Brewery in Ethiopia to Castel.
More recently, Diageo extended this “asset-light” beer business model to the Seychelles, where the group divested its majority control of Seychelles Breweries Limited in April 2025.
Earlier this month, Diageo parted ways with CEO Debra Crew after around two years in the role, with CFO Nik Jhangiani taking over on an interim basis.
