FRI, OCT 06 2023-theGBJournal|Guinness Nigeria announced Thursday that it will no longer import or distribute certain Diageo international premium spirits products, including Johnnie Walker, Singleton, and Baileys and others imported under its 2016 Sale and Distribution Agreement with Diageo plc, with effect from April 2024.
The brewer said in statement to stakeholders that, the move is in line with it’s long-term growth strategy, and it is also in alignment with Diageo plc’s decision to establish a new, wholly owned spirits-focussed business to manage the importation and distribution of its international premium spirits portfolio in West and Central Africa, with Nigeria as one of the hubs.
Guinness noted the benefits of decision, saying that the move will better position it to focus on its core business and its strength in the manufacturing, marketing and distribution of non-alcoholic drinks, beer, RTDs and its locally produced spirits, thus enhancing sustainability, growth, and value creation for all stakeholders of Guinness Nigeria.
-The change will enable the full utilisation of Guinness Nigeria’s asset base and will accelerate innovation in local spirits products.
-This strategic change reduces the Company’s foreign exchange requirements and mitigates the negative impacts of lingering foreign exchange scarcity and exchange rate
volatility on the financial performance of the Company
Guinness Nigeria, added that it will continue to manufacture and distribute its full portfolio of non-alcoholic drinks, beer, ready-to-drink (RTDs) and locally produced spirits, including inter-alia Orijin, Captain Morgan Gold, Gordon’s Moringa, and Smirnoff X1 Choco, fully utilising its asset base following the expansion of its production capacity in recent years as a foremost total beverage alcohol player.
In the financial year ended 30 June 2023, the revenue related to Guinness Nigeria’s portfolio of imported Diageo international premium spirit products was N14 billion, constituting approximately 6% of Guinness Nigeria’s total revenues.
”Guinness remains a strong Nigerian company committed to ensuring that its strategic and operational actions deliver value to our esteemed stakeholders by advancing Guinness Nigeria’s performance and sustaining business profitability,” the Company said.
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