Diageo has completed the acquisition of Meta Brewery, a leading beer company in Ethiopia, for a cash consideration of $225 million, subject to customary post completion adjustments. The acquisition concludes a competitive tender process held by the Privatization and Public Enterprises Supervising Authority on behalf of the Government of Ethiopia.
The acquisition represents a key milestone in achieving Diageo’s strategy of participating at scale in beer and spirits in growth markets in Africa. Meta Brewery is the second largest beer company in Ethiopia with a volume share of approximately 15%. From its brewery near the Ethiopian capital Addis Ababa, it produces and distributes its flagship national lager brands Meta and Meta Premium.
“Over the past five years, Diageo has invested more than £1 billion in building its businesses in Africa, and we will continue to look at opportunities to expand our footprint, grow our brands and secure strong routes to market,” points out Nick Blazquez, president of Diageo Africa.
The acquisition of Meta Brewery will give Diageo direct access to the rapidly growing Ethiopian beer market, and will complement Diageo’s existing premium spirits business in the country. The beer market in Ethiopia is estimated to continue to grow at more than 10% per annum to 2015, driven by strong GDP growth and increased disposable incomes. Diageo currently markets its international premium spirits brands, including Johnnie Walker scotch whisky, Smirnoff vodka and Gordon’s gin, through its representative office in Addis Ababa.