Global Beverage Giants Are Turning to African Brands for Their Next Acquisitions

Japan’s Asahi Group agreed to acquire Diageo’s 65% stake in East African Breweries for approximately $3 billion, valuing the company at about $4.8 billion.

Diageo said the valuation represented 17 times adjusted earnings before interest, tax, depreciation and amortisation. Kenya’s competition regulator approved the transaction in September 2026, although legal proceedings have delayed its completion.

Coca-Cola HBC agreed to acquire 75% of Coca-Cola Beverages Africa for $2.6 billion. The bottler operates across 14 African countries and accounts for approximately 40% of Coca-Cola’s sales volume on the continent. Completion was targeted for the end of 2026, subject to regulatory approvals.

France’s Castel completed its $81 million acquisition of Diageo’s 80.4% stake in Guinness Ghana Breweries in July 2025. Diageo retained ownership of the Guinness trademark and other licensed brands, allowing the Ghanaian brewer to continue producing and distributing them under long-term agreements.

In Nigeria, UAC completed its ₦182.5 billion purchase of Chivita|Hollandia from Coca-Cola in October 2025. The transaction added juice and dairy production to UAC’s consumer goods operations.

The company financed approximately 83% of the acquisition through borrowing, with the remaining 17% funded from its own resources.

Global Beverage Buyers Acquire African Brands and Production Assets

India’s Varun Beverages completed its R2.1 billion acquisition of South African soft-drink manufacturer Twizza in March 2026. The PepsiCo bottler took ownership of three production facilities and a beverage business operating across five southern African countries.

In August, Varun’s Kenyan subsidiary agreed to acquire dairy drinks, juice and bottled-water operations from Devyani Food Industries for approximately $32 million.

The transaction included manufacturing and distribution assets. Devyani is a related company within the wider business group, rather than an independent seller.

Nigeria’s Champion Breweries completed its acquisition of the Bullet beverage portfolio from Sun Mark in February 2026.

The deal transferred trademarks, product formulas and commercial rights to a majority-owned company in the Netherlands, with Sun Mark’s controlling shareholder retaining a minority stake. Bullet products were already distributed across 14 African markets.

Mauritius-based Phoenix Beverages acquired a 54.4% stake in Seychelles Breweries from Diageo in July 2025. Diageo subsequently reported $89 million in total consideration for the disposal.

Seychelles Breweries, which produces Seybrew lager, remained listed on the Seychelles stock exchange after the transaction.

African Beverage Brands Offer Buyers Established Distribution Networks

Equatorial Coca-Cola Bottling Company generated approximately $1 billion in turnover across 13 African countries in 2025. Its 47 production lines supplied more than 254,000 retail outlets, with around 2.5 billion transactions recorded during the year.

The company operates an established manufacturing and distribution network across multiple markets, although it has not announced plans to sell the business.

Mount Kenya milk reached 61.4% of Kenyan households in 2025, according to Worldpanel by Numerator’s September 2026 report. The brand recorded 173 million consumer reach points, combining household penetration with purchase frequency.

Its products were widely purchased through kiosks, neighbourhood stores and small retailers. Consumer reach points measure purchasing activity rather than unique customers or sales revenue.

Nigerian Breweries reported ₦1.10 trillion in revenue for the nine months ended September 2026. Gross profit rose 15.1% to ₦477.9 billion, while selling and distribution expenses increased 24.3% to ₦240.94 billion.

Those expenses accounted for approximately 50% of gross profit, leaving the company with substantial costs associated with getting its products to market.

Zimbabwe’s Delta Corporation recorded $1.09 billion in revenue for the financial year ended March 2026. Sparkling beverage volumes increased 14%, and its Chibuku sorghum beer brand achieved record sales.

The company also reported approximately $30 million in sugar surtax costs during the year. These expenses form part of the financial performance that buyers would need to examine when valuing an established beverage operation.

African Beverage Acquisitions Create Exit Opportunities for Investors

Adiwale Fund I acquired a controlling stake in Togolese pineapple juice producer Jus Délice from private equity fund Moringa in February 2025.

Moringa had invested in the business in 2018. Adiwale’s investment included funding for an additional production line to supply customers in Europe and North America. The companies did not disclose the sale consideration or Moringa’s investment return.

Old Mutual Private Equity sold South African beverage manufacturers Chill and Inhle Beverages in October 2024 to a consortium involving Alterra Capital Partners, Mineworkers Investment Company and Admaius Capital.

Old Mutual had acquired the businesses through its 2022 takeover of Long4Life and reported that the beverage operation more than doubled in size under its ownership.

The portfolio included Score energy drinks, Fitch & Leedes mixers and contract manufacturing facilities in Gauteng and the Western Cape.

Standard Bank and Rand Merchant Bank provided financing for the Chill and Inhle acquisition. Neither the purchase price nor Old Mutual’s realised return was publicly disclosed, despite the reported expansion of the business before its sale.

The African Private Capital Association recorded 50 private capital exits across the continent during the first nine months of 2026, an 11% decline from the same period in 2025.

Stears reported 22 exits in the third quarter, compared with 11 in the preceding quarter and 30 a year earlier. Of the 29 acquisitions recorded during the quarter, 14 involved shareholder exits, up from five of 36 acquisitions in the second quarter.

Stears also reported a median investment holding period of seven years for the first nine months of 2026, compared with six years a year earlier. These figures cover private capital transactions across industries and are not specific to beverage businesses.

The completed sales of Jus Délice, Chill and Inhle establish acquisition routes for existing shareholders, although the undisclosed transaction proceeds prevent a calculation of their realised investment returns.

African Beverage Acquisitions Face Financing and Regulatory Tests

Nestlé Nigeria’s board agreed on October 28 to seek shareholder approval to transfer its water and premium beverages business into a company that would become part of Peranel, a proposed joint venture between Nestlé S.A. and Platinum Equity.

KPMG and Niyi Fatokun & Co. prepared valuations, while Deloitte provided a fairness opinion. The transfer remains subject to shareholder and regulatory approvals, with no purchase consideration publicly disclosed.

The African Development Bank approved a $15 million equity investment in SPE PEF III in March 2026, supporting investments in sectors including food processing, manufacturing and packaging.

In May, it approved a separate $200 million financing facility for Nigeria’s Bank of Industry, covering agro-food businesses and other industries.

Neither facility was designated for a particular beverage acquisition, and the approvals do not establish that funds have reached prospective buyers.

South Africa increased its merger notification thresholds in May 2026. Intermediate mergers generally require notification when the combined turnover or assets of the businesses reach R1 billion and the target company’s turnover or assets reach R200 million.

Transactions meeting these thresholds require competition review before completion, with additional approvals potentially necessary for businesses operating across several countries.

Nestlé’s proposed transfer has yet to receive the approvals required to proceed, while the development financing commitments remain separate from announced beverage purchases.

Buyers pursuing further acquisitions will have to fund their purchases at prices supported by operating earnings, including the costs of debt and distribution.

The transactions most likely to advance are those with identified buyers, agreed valuations, committed acquisition financing and the regulatory clearances required to transfer ownership.