Drinks group, Diageo plc (LSE: DGE) announced that its East African subsidiary, East African Breweries (‘EABL’) Limited had entered into a conditional agreement to acquire a “substantial” interest in Tanzania’s second largest brewer, Serengeti Breweries (‘SBL’). Serengeti Breweries has around 17% of the Tanzanian market by volume and has grown strongly over the past three years with its premium Serengeti Lager.
“SBL will form an integral part of EABL's East African supply footprint providing additional capacity to Kenya and Uganda,” Diageo stated.
Diageo plc owns 50.03% of East African Breweries, which is listed on three African exchanges: Tanzania, Uganda and Kenya. Its flagship brands include Tusker Lager, Pilsner, Guinness, Smirnoff Vodka and Johnnie Walker Scotch Whisky.
East African Breweries also confirmed that it had terminated its existing brewing and distribution agreement with Tanzania Breweries Limited. The two companies are also currently embroiled in a legal spat.
Diageo Africa contributes to nearly a third of Diageo's net sales of beer globally and employs over 4,500 people.
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