Diageo divests majority stake in Seychelles Breweries for US$80M
Diageo continues with its asset-light strategy as it exits Seychelles Breweries with an US$80 million stake sale to Phoenix Beverages.
SEYCHELLES – Diageo has sold its 54.4% majority stake in Seychelles Breweries to Mauritius-based Phoenix Beverages, a subsidiary of IBL Group, for approximately US$80 million.
The deal strengthens Phoenix Beverages’ presence in the Indian Ocean beverage market while allowing Diageo to refine its operating model in the region.
Seychelles Breweries, known for its SeyBrew beer and a range of other beverages, will remain listed on the Seychelles Stock Exchange following the transaction.
Under the agreement, Diageo will retain ownership of its brands and continue in-market distribution through IPS. Seychelles Breweries will also hold a new long-term license and royalty agreement to produce Diageo-branded products.
The acquisition aligns with Diageo’s strategy of active portfolio management, ensuring a sustainable and efficient business model in the Indian Ocean region.
Phoenix Beverages already partners with Diageo in Mauritius, producing Guinness and Smirnoff Ice, and brings extensive expertise in the regional beverage sector.
Dayalan Nayager, President of Diageo Africa and Chief Commercial Officer, emphasized the strengthened partnership, stating, “I am excited to extend our successful collaboration with Phoenix Beverages, a long-term partner in the Indian Ocean region, to further unlock value for Seychelles Breweries and drive sustainable growth.”
For the financial year ending June 30, Seychelles Breweries recorded net sales of SRs568.2 million (US$39 million), down slightly from SRs578.3 million the previous year. Operating profit declined by 23% to SRs137.8 million, while total profit stood at SRs91 million, compared to SRs122.2 million a year earlier.
Arnaud Lagesse, Chairman of Phoenix Beverages, described the acquisition as a strategic step toward accelerated growth. “This acquisition allows us to fast-track our ambitions in a way that organic growth alone could not match,” he said.
“Strengthening our presence in Seychelles gives us the momentum to create lasting value and deepen our leadership across the Indian Ocean beverage landscape.”
Diageo’s divestment follows a broader trend of restructuring its African operations. Recently, Diageo divested its 80.4% shareholding in Guinness Ghana Breweries to French beverage company Castel Group for US$81 million.
Earlier, Diageo divested its Guinness brewing operation in Cameroon to Castel in 2022 and its sale of shares in Guinness Nigeria to Singapore-based consumer group Tolaram in 2023.
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