Drinks group Diageo is selling its subsidiary Guinness Ghana Breweries, days after denying reports that it was considering a sale of the entire Guinness brand.

Spirits giant Diageo has agreed to sell its 80.4% shareholding in Guinness Ghana to Castel Group for $81 million, it said on Tuesday, continuing to refine its operating model in Africa. Diageo said that it will retain ownership of the Guinness brand and other Diageo brands produced by Guinness Ghana,

Diageo Plc said it doesn’t plan to sell the Guinness beer brand or its stake in Moet Hennessy, even as pressure grows on the company to find ways to revive growth.

Guinness is an outlier in Diageo's business, which consists mostly of spirits rather than beer, but its performance recently has outshone that of key liquor labels, such as Johnnie Walker whisky.

The drinks giant changed tack over the weekend after declining to comment on a report on Friday (24 January) that it was mulling a potential sale of Guinness.

Diageo has announced plans to sell 80.4% shareholding in Guinness Ghana Breweries plc to Castel Group for $81 million (€77.7 million).

As part of the deal, the drinks giant will retain ownership of the Diageo brands that are produced by Guinness Ghana (such as Guinness, Malta, Orijin, Smirnoff Ice and Alvaro), with the rights instead licensed to Guinness Ghana under a new long-term agreement.

The brewer has sold the shares to French beverage company Castel Group but will continue to own the Guinness brand under a new agreement

Media reports suggested Diageo was considering asset sales to boost growth, cashing in on high demand for Guinness. View on euronews