Diageo has entered into an agreement for the sale of United National Breweries (UNB), its sorghum beer business in South Africa, to Delta Corporation.
Midrand-headquartered UNB produces a range of beer brands in South Africa such as Chibuku, Ijuba and Leopard Special.
The transaction, which is subject to regulatory approval, is expected to close in the second half of 2019.
In 2015, Diageo sold its 42.25% stake in DHN Drinks, the joint venture it operated with Heineken and Namibia Breweries in South Africa and Namibia.
Alongside the deal, Diageo offloaded 25% of the Sedibeng brewery in Gauteng, South Africa, as well as its 15% share in Namibia Breweries, to Heineken.
In its full-year results posted in July, Diageo – the owner of brands such as Guinness and Captain Morgan – saw its net sales in South Africa fall by 3%, which was largely driven by a decline in mainstream spirits.
Globally, the company recorded a 1% rise in net sales to £12.16 billion, is it benefitted from the popularity of gin.
© FoodBev Media Ltd 2019
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