Diageo has entered into an agreement for the sale of Meta Abo Brewery, its brewery in Sebeta, Ethiopia, to BGI, part of Castel Group. The spirits giant who is also known for its Guinness beer brand acquired Meta Abo Brewery in January 2012 for USD 225 million as part of the privatization program of the Ethiopian beer business. Since then, Diageo has invested another USD 344 million and tripled its capacity and to 1.7m hl in 2015.
In a media statement Diageo did not cite reasons for the sale nor disclosed financial details of the deal. The sale is subject to approval by the Ethiopian Competition Commission and certain conditions and is expected to be completed early in 2022.
Diageo will continue to service the Ethiopian market with its spirits portfolio through its dedicated imported spirits channel. With a population of 95 million, Ethiopia is Africa’s second most populous country with one of the fastest rates of urbanization in the world.
BGI Castel is next to Heineken the largest brewer in the country. The combined capacity with Meta Abo Brewery will give BGI again the leadership in the country.
