Diageo Plc, the British multinational alcoholic beverage giant, has initiated a strategic review of its 65% stake in East African Breweries Ltd. (EABL), its largest African brewing asset.
First reported by Bloomberg, it is being advised by Bank of America and Goldman Sachs and could lead to a full or partial divestment.
Analysts estimate EABL’s beer business could be valued at up to US$2 billion (~KSh 258 billion), notably higher than its current US$1.2 billion (~KSh 155 billion) valuation on the Nairobi Securities Exchange.
Founded in 1922 as Kenya Breweries Ltd., EABL remains a regional powerhouse, operating in Kenya, Uganda, and Tanzania, and distributing to over 10 African countries. Its brand portfolio includes Tusker, Bell Lager, Kenya Cane, and the licensed Guinness.
Strategic Shifts and Potential Buyers
The review aligns with Diageo’s broader shift to an asset-light model, aimed at freeing capital amid global headwinds. Potential buyers include Heineken NV, Castel Group, and AB InBev, signalling strong industry interest and a possible shake-up of East Africa’s beer market.
Earlier this month, Diageo replaced CEO Debra Crew after a turbulent two-year tenure marked by a 40% drop in share price, scrapped growth targets, and a profit warning.
Africa Retreat Deepens
Diageo’s retreat from African brewing operations continues. Recent exits include Guinness Ghana, Nigeria, Cameroon, and breweries in Seychelles and Ethiopia. A sale of EABL would mark its largest African exit yet—potentially reshaping the region’s beverage landscape.
All Eyes on Earnings
EABL will announce its full-year financial results on Thursday, July 31, a release that could influence deal negotiations, valuation metrics, and investor sentiment.
