Guinness Nigeria has informed today that it will terminate its 2016 Sale & Distribution Agreement with Diageo plc. and will cease to import or distribute certain Diageo international premium spirits products, including Johnnie Walker, Singleton, and Baileys with effect from April 2024.
This strategic shift aligns with Guinness Nigeria's long-term growth strategy and complements Diageo plc's decision to establish a wholly owned business focused on managing the importation and distribution of its international premium spirits portfolio in West and Central Africa, with Nigeria as a key hub.
In the fiscal year ending on June 30, 2023, Guinness Nigeria's revenue from the imported Diageo international premium spirits products amounted to NGN 14 billion (USD 18m), constituting approximately 6% of the company's total revenues.
Guinness Nigeria will maintain its manufacturing and distribution of its complete range of non-alcoholic beverages, beer, ready-to-drink (RTDs), and locally produced spirits, including Orijin, Captain Morgan Gold, Gordon's Moringa, and Smirnoff X1 Choco. This decision leverages the company's expanded production capacity in recent years, solidifying its position as a leading total beverage alcohol player.
Diageo plc's shareholding in Guinness Nigeria remains unchanged, with Diageo continuing to hold a 58.02 % stake in the company. Next biggest shareholder is New York-based hedge fund Mutima Capital Management LLC with a share of 5.6 %. At the end of June 2021, the group had 6 production sites located in Nigeria (4) and Benin (2).
John Musunga, Managing Director/CEO of Guinness Nigeria, emphasized that the new structure positions the company to concentrate on its core business, bolstered by investments in expanding brewery capacity to meet growing demand for beer and successful local spirits brands. It also strengthens manufacturing, marketing, and distribution capabilities while reducing forex exposure, ultimately fostering sustainable growth and value creation for all stakeholders.
