Key takeaways:
- Diageo will sell its 65% shareholding in East African Breweries Limited (the largest brewery in East Africa) to Asahi.
- Asahi will also buy 100% of the shares in Diageo Kenya Limited, alongside Diageo’s shareholding (53.68%) in Kenyan spirits business, UDVK.
- Africa represents an attractive beer market: with a fast-growing population and economic expansion
Diageo continues to reshape its portfolio after a difficult 2024 and 2025: reacting by offloading some assets and focusing on its strengths, such as its key premium spirits brands.
The deal follows its decision to sell its stake in Guinness Ghana Breweries in January to French drinks group Castel for $81m; its shareholding in Guinness Nigeria to Tolaram in 2024; and its Guinness brewing business in Cameroon in 2022 to Castel.
But for Asahi, the deal represents the first time a major Japanese brewer has made an investment of this size in an African alcohol beverage business.
EABL is the largest beer business in East Africa: with a focus in Kenya, Uganda and Tanzania. Its top beer brands include Senator, Tusker and Serengeti; alongside spirits brands Chrome and Kenya Cane.
The acquisition is a big move for the Japanese brewer: and it’s part of a strategy to grow into new business areas, including expanding its geographical footprint.
Asahi already has a strong presence in Japan (where it has around a 40% market share), Asia, Europe (where it has acquired brands such as Peroni, Pilsner Urquell and Grolsch), and Australia (it bought Carlton & United Breweries in 2020). Asahi Super Dry is a top imported beer in North America.
But now the brewer eyes up the growth potential of the African market: which is expected to deliver long-term growth driven by a fast-increasing population and economic expansion.
Revenue and volume growth for EABL in 2025
Headquartered in Nairobi, Kenya, EABL grew revenue 4% to Kshs 128.8 billion ($1bn) in 2025.
Volume grew 2% as both beer and spirits enjoyed growth across markets.
EABL has subsidiaries across East Africa: including Kenya Breweries Limited, Uganda Breweries Limited, International Distillers Uganda Limited, Serengeti Breweries Limited, UDV (K) Ltd and East African Maltings Limited.
Currently, 65% of the business is owned by Diageo Kenya Limited; while 35% is owned by other public shareholders.
It has 1,674 employees.
The business was created around its flagship product, Tusker, more than 100 years ago. Since then, it has expanded to a collection of beer and spirits to adult non-alcoholic beverages.
Africa has one of the youngest populations globally. Meanwhile, rapid urbanization is seeing young professionals move into cities with increased disposable incomes. A rising middle class is looking for premium and branded products.
Beer consumption, per capita, is currently relatively low compared to other markets: meaning there is significant runway for growth.
The African beer market is estimated to be worth $44bn in 2024, with a CAGR of 6% from 2024 to 2033, according to figures from Market Data Forecast.
Part of the deal with Diageo will include long-term licenses for Diageo’s top global brands: such as Guinness, Johnnie Walker and Smirnoff Ice.
Asahi President and Group CEO, Atsushi Katsuki, highlights the businesses’ ‘unrivaled brand portfolio and marketing capabilities, state-of-the-art production facilities and strong market shares’.
The deal is expected to close in the second half of 2026, subject to regulatory approvals.
