Spirits giant Diageo, the maker of Smirnoff vodka, has agreed to sell its Meta Abo Brewery in Sebeta, Ethiopia, to Castel Group subsidiary BGI.
The transaction, expected to close early this year, is subject to approval by the Ethiopian Competition Commission and certain conditions.
Diageo will continue to service the Ethiopian market with its international spirits portfolio through its dedicated imported spirits channel.
The spirits giant did not disclose the value of the deal.
Meta Abo Brewery
In 2012, Diageo acquired Meta Abo Brewery and focussed on transforming the brewing industry in Ethiopia.
The company invested in the training and skills development of employees and supported local communities by providing clean water and forming close partnerships with local farmers.
It also re-launched the Meta brand and implemented measures to increase its production capacity to meet future needs.
In 2015, the brewery completed a $119-million bottling line expansion in Sebeta, which also marked the culmination of a $344 million investment by Diageo.
Organic Sales Growth
Elsewhere, Diageo said it expects organic sales growth to range between 5% and 7% for the financial period 2023 to 2025, compared with 4% to 6% growth during 2017 to 2019, as it laid out its medium-term targets.
It also announced its ambition to achieve a 50% increase in total beverage alcohol (TBA) market share by the end of the decade, from 4% in 2020 to 6% by 2030.
In November of last year, the Smirnoff vodka-maker entered into a non-discretionary agreement with Goldman Sachs International (GSI) to enable the company to buy back shares with a value of up to £0.55 billion.