Controversial Validation Of The Acquisition Of Guinness Cameroun By SABC, An Affiliate Of The French Group, Castel

There are seven legalized breweries in Cameroon

The Court of Justice of the Central African Economic and Monetary Community, CEMAC, located in Bangui, Central African Republic, in a recent ruling validated the controversial sale of Guinness Cameroun SA by its mother company, Diageo Group of Scotland in the United Kingdom, to Groupe CASTEL of France, The Castel Group is the mother company of ‘Societe Anonyme des Boissons du Cameroun’, SABC, formerly known as ‘Societe Anonyme des Brasseries du Cameroun’. The acquisition of Guinness Cameroun SA by the Castel Group is for its affiliate in Cameroon, SABC.Cameroonian and CEMAC authorities approved the controversial acquisition of Guinness Cameroun SA by SABC, back on March 21, 2023, but had to wait for the verdict of the CEMAC Court. However, the fact that the Cameroonian and CEMAC authorities went ahead last year to validate the sale of Guinness Cameroun to SABC, was a clear indication that they would not accept a contrary verdict by the CEMAC Court. The General Manager of SABC, Stephane Descazueaud, had in his reaction as expected, expressed joy and saluted the approval by Cameroon and CEMAC authorities, of the acquisition of Guinness Cameroun by SABC. The delay by the CEMAC Court to deliver judgment on the matter raised some hopes that the court could bold enough do the right thing, by taking a contrary decision to that of the Cameroonian and CEMAC authorities. That is, declare the acquisition deal, illegal.  But at last, it was not the caseThe decision by the Cameroonian and CEMAC authorities, to violate their own text and validate the controversial acquisition of Guinness Cameroun SA, did not however come as a surprise to observers, considering the high level of corruption in the CEMAC Zone. There is also the aspect of neocolonialism.  Groupe Caste or the Castel Group which is a powerful French Group operating in as many as 25 countries has the capacity to wield much influence in the CEMAC zone.  Worthy of note, that five of the six member countries of CEMAC, including Cameroon (the Francophone part), are former French colonies. That says it all.  Also worth noting, that SABC was created in 1958, that is, during the period of French colonial rule, or better still, before Cameroon’s independence

.Diageo Group Decides To Quit Cameroon

Talking about the acquisition of Guinness Cameroun SA by SABC, the story goes that the Diageo Group which was the mother company of Guinness Cameroun SA, decided to sell the subsidiary in Cameroon. It should be noted that by the year 2021, there were three big breweries in Cameroon. There were Guinness Cameroun SA, Union Camerounais de Brasseries (UCB), and SABC.  Also, SABC was indisputably the first in terms of the percentage of the Cameroonian market it occupied with its products. SABC occupied more than 60 % of the market.  Guinness Cameroun was second, while UCB that was created in 1972 occupied the third position. UCB which is a Cameroonian company, or better still a company that was created with local capital, is owned by the KADJI Group of the late Cameroonian industrialist, multibillionaire, and notable, Joseph Kadji Defosso, who was also Mayor in his native Bana, Upper Nkam Division in the West Region.Another multinational or foreign company, ‘Source du Pays’, produces only soft drinks with the most popular, definitely being American Cola. Worth noting, that when it comes to the mineral water sector in the country, ‘Source du Pays’ today is indisputable the leader, with its ‘Supermont’ being produced since 1984. The source of Supermont is Mount Cameroon in Fako Division of the Southwest Region, though the company’s headquarters is in Douala.

Diageo Group Cedes Guinness Cameroun’s Products

Meanwhile, In July 2022, the Diageo and Castel Groups struck a deal which led  the former to  cede its products, precisely its beer (Guinness, Harp etc), its mixed product (Guinness Smooth) and its soft drink (Malta Guinness) to the then ‘Societe Anonyme des Brasseries s du Cameroun’ now known as ‘Societe Anonyme des Boissons du Cameroun’. The only products of Guinness Cameroun that was left out of the deal were spirits commonly known as whiskies which were being produced by Guinness Cameroun.  That could be understood by the fact that SABC has its own whiskies, and also the fact that local whiskies don’t seem to be doing very well in the market, as many Cameroonians have that funny mentality of appreciating more the imported or foreign whiskies. Whatever the case, it should be noted that the agreement for the acquisition of Guinness Cameroun by SABC, also included the takeover of the workers of the company (Guinness Cameroun) by SABC.

UCB Launches Protest

Meanwhile when the acquisition of Guinness Cameroun by the Castel Group, or better still by ‘Societe Anonyme des Brasseries du Cameroun, was announced, UCB cried foul and launched a protest. The protest included taking the matter to the CEMAC Court in Bamgui, Central African Republic. Some members of the civil society and great legal minds like Barrister Roland Abeng of the Abeng Law Firm in Douala, who is an international Legal consultant and member of the Cameroon, British and American Bar Associations, made bold to stand up and denounce the deal between Diageo and Castel Groups as illegal, and thus wrong.  No one said that the Diageo Group did not have the right to sell its subsidiary in Cameroon. The issue was that it should not have been sold to SABC which already occupied over 60 percent of the market.For one thing, the text of CEMAC clearly forbids private companies from imposing or creating a situation of monopoly of any form, in the private sector in member countries. The CEMAC Law is rightly aimed at protecting the economy and population of member States. The acquisition by SABC which already occupied over 60 of the Cameroon market, of Guinness Cameroun which was the second biggest brewery and thus the principal rival of SABC in the Cameroon market, clearly creates a form of monopoly in the sector. SABC which is an affiliate of the Castel Group is a foreign company. The huge profits made annually by SABC do not remain in Cameroon.  They go to France. Also, it is very unwise for any country to allow a foreign company to exercise a form of monopoly in one of its key economic sectors

.ISENBECK Was Also Sold To SABC

Meanwhile, a couple of years ago, a German company which had created an affiliate in Cameroon by setting up a brewery at Bonaberi. Douala to produce the German beer, ISENBECK, decided to leave Cameroon. This was after its Cameroonian partner (minority shareholder), attempted to steal the brewery with the complicity of some corrupt judges at the Douala Courts. In fact the minority shareholder, who was a member of the Central Committee of the ruling CPDM Party, actually grabbed the brewery with the complicity of the courts. It was the intervention of the German Government in the matter, that moved the President of Cameroon, Paul Biya, to  instruct  the then Minister of Justice , Amaodu Ali, to throw out the dubious  Cameroonian businessman from the  brewery, and hand it back to the German  company, the rightly owner.  But the German company had become so disgusted with what happened, that it decided to sell the brewery in Douala, and leave Cameroon.  Suffice to say it was the Castel Group that bought Isenbeck brewery in Douala, for its subsidiary, SABC,

.Seven Breweries In Cameroon.

Meanwhile there are a total of seven legalized breweries in Cameron today, with a majority (four), being small breweries. The breweries are: SABC, Guinness Cameroun SA, UCB, Brasaf of Cameroonian billionaire, Samuel Foyou, “Source du Pays”, and Gracedom Bottling Company. Worthy of note that Gracedom Bottling Company is located at Kake Village after Souza town on the Douala  – Mbanga  – Nkongsamba Highway in the Littoral Region.  Gracedom Bottling Company is owned by Gracedom Invest (Groupe  Gracedom Invest), which on July 1, 2022 obtained the license  to  produce and distribute the international soft drink, Coca – Cola. The brewery has provisional capacity to produce 6000 bottles a day.Interesting enough, the PDG of Gracedom Invest Group is a powerful business lady, in the person Jacqueline Dongmo. It should also be noted that the proprietors of all the three breweries owned by Cameroonians, that is UCB of Kadji Group, BRASAF of Samuel Foyou and Gracedom Bottling Company, are all children from one region, which is the economically powerful West Region.