Drinks giant Diageo has stepped up its expansion in a high growth market with the $225m acquisition of African brewery Meta Abo Brewery.
Meta is the second-largest beer company in Ethiopia and has a volume share of 15%. It produces and distributes its flagship national lager brands Meta and Meta Premium.
According to Diageo Africa President Nick Blazquez, "Gaining access to this exciting beer market is part of our strategy of participating at scale in beer and spirits in growth markets in Africa, and I am delighted that we are able to announce the completion of this acquisition."
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"Meta is a strong national brand that has great heritage in Ethiopia," he added.
Separately, Diageo detailed the segmental changes it was making to its group structure, including the decision to list Latin American and Carribbean and Diageo Africa as two autonomous regions, replacing the previous 'International' region. The Middle East business has now been included in 'Asia Pacific'.
The African region accounted for £1,357m of the firm's £9,936m generated in net sales in the 12 months ended 30 June 2011. Organic sales rose by 11% in the region last fiscal year, while organic operating profits were 18% higher. Meanwhile, total group sales increased by a lesser 5% organically in the period.
Diageo already employs over 5,300 people across its businesses in Africa and owns 13 breweries, 15 bottling plants and one glass plant.
The changes to the segmental structure will be made for the current year accounts.
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