SBM buys 33% stake in Africa Retail Market in US$4.2M deal
Castel-backed SBM strengthens distribution foothold as Morocco’s grocery sector sees aggressive store expansion.
MOROCCO – Société des Boissons du Maroc (SBM) has acquired a 33% shareholding in Africa Retail Market (ARM) for MAD50 million (US$4.2 million), reinforcing its position in Morocco’s fast-growing retail distribution sector.
The transaction marks a significant step in the partnership between the two companies and reflects their shared long-term strategic interests.
The investment forms part of an upcoming capital increase that remains subject to approval by relevant regulatory bodies and corporate governance frameworks, including the Conseil de la Concurrence and ARM’s board of directors.
The acquisition signals a renewed entry of SBM into ARM’s capital structure and further underscores the depth of their collaboration.
Founded in 1919, SBM is one of Morocco’s most established beverage companies. Its portfolio includes beers, wines, and soft drinks, supported by several production sites across the country.
As a subsidiary of Castel Group, SBM benefits from broad international experience and an extensive distribution network within the beverage sector.
ARM serves as the franchise operator of Coopérative U in Morocco. Its retail network consists of five “U Express” convenience stores and three “Hyper U” hypermarkets, with the first Hyper U having opened in Casablanca in April 2024. The company plays an increasingly important role in Morocco’s modern retail landscape.
The country’s grocery retail sector has become increasingly competitive, with leading operators accelerating expansion plans. In November 2024, Marjane announced an ambition to launch 45 neighborhood outlets annually. In July 2024, Label’Vie revealed plans to reach 953 stores by 2028, driven largely by smaller-format growth.
Discount chains such as BiM and Kazyon also continue to scale rapidly. Additionally, Casino Group and H&S Invest Holding disclosed plans in May 2025 to develop 210 Monoprix stores by 2035, beginning with their first opening scheduled for 2026.
In 2023, SBM divested its bottled water subsidiary, Euro Africaine des Eaux, to Mutandis for MAD380 million (US$48.2 million).
Castel has maintained a long-term goal of diversifying beyond beverages; in Morocco, the group operates 11 Nicolas wine stores but otherwise has limited retail operations.
SBM reported 2024 revenues of MAD2.8 billion (US$303.08M), representing a 2% year-on-year decline. Net profit dropped from MAD422 million (US$45.68M) in 2023 to MAD216 million (US$23.38M) in 2024 due to economic pressures and fiscal challenges.
The results were further affected by an exceptional charge of MAD76.4 million (US$8.27M) linked to a tax audit covering 2020–2023.
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