Diageo has agreed to sell its Kenyan business to Japanese group Asahi in a £2.3billion deal as the Guinness maker steps up efforts to cut debt amid weakening global alcohol demand.
The London-listed drinks giant will offload its 65 per cent stake in East African Breweries, the dominant player in Kenya’s drinks market, as it sells off ‘non-strategic, non-core’ assets.
It comes as former Tesco boss Dave Lewis is set to join as chief executive in January. Known as ‘Drastic Dave’ for his ability to turn around businesses, Lewis will confront historically low industry valuations amid falling demand among young people and US tariffs on imports.
The transaction with Asahi is expected to reduce Diageo’s debt, interim chief executive Nik Jhangiani said.
The company has been steadily offloading its African beer operations. The group sold its Ethiopia and Cameroon businesses in 2022, Nigeria in 2024, and Ghana this year.
Diageo will maintain farming operations for certain premium spirits in Africa as it focuses on the likes of Johnnie Walker, Baileys and Tanqueray gin.
Debt fight: Diageo will offload its 65% stake in East African Breweries, the dominant player in Kenya’s drinks market, as it sells off ‘non-strategic, non-core’ assets
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