Diageo plc has announced the sale of its 80.4% stake in Guinness Ghana Breweries plc to Castel Group, further strengthening its partnership with Castel in Africa. The move aligns with Diageo’s strategy to build a flexible, asset-light beer operating model that promotes efficiency and profitability.Despite the sale, Diageo will retain ownership of the Guinness brand and other Diageo brands currently produced by Guinness Ghana.

0

These will now be licensed to Guinness Ghana under a long-term licensing and royalty agreement. Diageo, in collaboration with Castel, will continue to drive the brand and marketing strategy for Guinness in Ghana to ensure sustained growth and development.Castel Group, which has extensive experience in West and Central Africa and is already a partner to Diageo in 11 other African markets, will take over operations of Guinness Ghana.

1

All existing Diageo brands produced by Guinness Ghana, including Guinness, Malta, Orijin, Smirnoff Ice, Alvaro, and mainstream spirits, will continue to be produced under the new licensing arrangement.This transaction follows a series of strategic moves by Diageo to refine its operations in Africa. In September 2024, the company sold its stake in Guinness Nigeria plc to Tolaram to boost growth in Nigeria.

2

Prior to that, in October 2023, Diageo established a dedicated spirits company to enhance its premium spirits business in West Africa. Additionally, in July 2022, Diageo sold Guinness Cameroon to Castel.Commenting on the sale, Dayalan Nayager, President of Diageo Africa and Chief Commercial Officer, said:“Guinness Ghana is performing strongly powered by a fantastic team of people.

3

Through this transaction, I look forward to the Guinness brand continuing to thrive and delivering further growth. I am excited to extend our partnership with Castel, a long-term partner in the region with a proven track record.”Castel’s CEO, Gregory Clerc, expressed optimism about the acquisition, stating: “This acquisition exemplifies the entrepreneurial spirit that drives Castel and marks a new milestone in our growth ambition.

4

It reflects our ability to go where we are least expected, exploring new horizons on a continent full of opportunities. With this 22nd African country, we reaffirm our dynamism, our boldness, and our confidence in Africa’s potential.”Guinness Ghana will remain listed on the Ghana Stock Exchange following the completion of the transaction, which is expected by the end of the year, pending regulatory approval.

5