Diageo sells Seychelles Breweries stake to Phoenix Beverages for US$80M

SEYCHELLES – Diageo has agreed to sell its 54.4% majority stake in Seychelles Breweries Limited (Seybrew) to Phoenix Beverages, a subsidiary of Mauritius-based IBL Group, for US$80 million. 

The deal, expected to conclude by June 2025, marks the latest step in Diageo’s ongoing shift toward an asset-light business model in Africa.

Phoenix Beverages, which already produces Guinness and Smirnoff Ice under license in Mauritius, will take over Diageo’s interest in the publicly listed Seychelles-based brewery. 

Seychelles Breweries, known for its SeyBrew beer and a portfolio of beverages, will remain listed on the Seychelles Stock Exchange following the transaction.

Under the terms of the agreement, Diageo will retain ownership of its Diageo brands currently produced at Seychelles Breweries, including Guinness and Smirnoff ready-to-drink (RTD) products. 

These brands will continue to be produced under a new long-term license and royalty arrangement. Additionally, Seychelles Breweries will distribute Diageo’s International Premium Spirit (IPS) brands in-market as part of a revised distribution agreement.

The sale strengthens Phoenix Beverages’ footprint in the Indian Ocean beverage market and deepens its operational presence in the region. 

The company already holds licenses for Diageo brands in Mauritius and operates as a key player in beverage production and distribution across island economies. 

Arnaud Lagesse, Chairman of Phoenix Beverages, described the acquisition as a move to accelerate growth beyond what organic expansion could achieve.

Seychelles Breweries reported net sales of SRs568.2 million (US$39M) in the financial year ending June 30, down from SRs578.3 million (US$39.7M) in the previous year. Operating profit fell by 23% to SRs137.8 million (US$9.5M), while total profit declined to SRs91 million (US$6.3M) from SRs122.2 million (US$8.4M) a year earlier.

The Seychelles divestment follows a sequence of similar sales by Diageo across Africa. In January 2025, the company sold its 80.4% stake in Guinness Ghana Breweries to France’s Castel Group for US$81 million. 

This followed the 2022 divestiture of Guinness Cameroon, also to Castel, in a deal worth US$460 million. 

In 2024, Diageo offloaded its 58.02% stake in Guinness Nigeria to Singapore-based Tolaram Group in a transaction valuing the business at US$1.22B. That deal also included the establishment of a joint venture, Celebr-8 Lyfe, to manage the distribution of Diageo’s premium spirits portfolio in Nigeria.

Diageo previously exited Ethiopia with the 2022 sale of its Meta Abo brewery to Castel, as it continued to streamline its brewery operations in Africa.

This most recent transaction has raised speculation over the future of East African Breweries Limited (EABL), in which Diageo owns a controlling interest. 

EABL operates breweries in Kenya, Uganda, and Tanzania. Industry analysts suggest that a divestiture may be under consideration, with IBL Group—Phoenix Beverages’ parent company—emerging as a potential acquirer. 

IBL Group is already active in the Kenyan market through majority stakes in supermarket chain Naivas and pharmaceutical distributor Harley’s, and also holds a minority stake in local alcoholic beverage startup African Originals.

In a statement, Dayalan Nayager, President of Diageo Africa and Chief Commercial Officer, reaffirmed the group’s continued relationship with Phoenix Beverages, calling it a long-term regional partner.

The Seychelles sale, following other recent disposals, points to Diageo’s move to focus on premium spirits while outsourcing brewing operations through licensing and joint ventures. 

The company continues to emphasize operational efficiency and market presence through distribution partnerships rather than direct ownership of production assets.