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EABL to continue making Guinness despite Diageo exit
East African Breweries Limited (EABL) plant in Ruaraka, Nairobi.
EABL will continue to manufacture and distribute the Guinness beer and local spirits owned by Diageo Plc under licence after the British multinational agreed a deal to sell its entire stake in the Kenyan brewer to Japanese beverage firm Asahi Group Holdings.
Under the sale agreement announced on Wednesday morning, Asahi will purchase Diageo’s 65 percent EABL stake that is wholly held through an investment vehicle known as Diageo Kenya Limited, and a 53.68 percent holding in spirits producer and importer UDV Kenya for a net consideration of $2.3 billion (Sh296.6 billion).
The deal is expected to conclude before the end of 2026, pending regulatory approvals.
“Diageo has committed to enter into long-term licensing agreements with EABL to secure the continued production and distribution of Guinness, local spirits and ready-to-drink brands, as well as the distribution of Diageo international spirits,” said Diageo in a regulatory announcement.
“We are excited to partner with Asahi through the licensing of Diageo brands in the region going forward.”
The company added that local brands such as Tusker beer and Kenya Cane will remain under the ownership of EABL. The multinational will renew agreements with EABL to produce certain Diageo spirits such as Smirnoff and Captain Morgan, and ready-to-drink brands such as Smirnoff Ice and Origin.
The transaction is part of Diageo’s broader strategy of shedding non-core assets, which has seen it exit key African beer markets.
Asahi Holdings, which is listed on the Tokyo Stock Exchange, produces a diverse range of beer, alcohol, and non-alcoholic beverages, and food brands. The company maintains a presence in Japan & East Asia, Europe, and the Asia Pacific, with annual revenue of $19 billion (Sh2.45 trillion).
The Japanese firm is expected to introduce some of its best-known brands, which include Asahi Super Dry, Peroni Nastro Azzurro, and Pilsner Urquell, into the Kenyan and East African market after completing the share purchase.
Asahi expects EABL to remain listed on the Kenya, Uganda, and Tanzania stock exchanges after completion of the transaction.
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