Energy-boosting drinks Ribena and Lucozade brands are set to operate under a new owner, Africa FMCG Distribution Ltd (AFDL) following the acquisition from Suntory Beverage & Food Limited (SBF) for $14 million.
The deal which reportedly cost $7 million each for the transfer of share and loan would be completed in the second quarter of 2022 subject to a nod from regulatory authorities in Nigeria.
The new owner, AFDL is a subsidiary of Chanrai Summit Group, a multi-faceted company distributing products and is expected to expand the business by leveraging on its robust supply chain management infrastructure.
What they are saying
Kazuhiro Saito, CEO of SBF said, “As part of our regular strategic portfolio review and considering the broad options in Nigeria to accelerate the growth of our brands, we have decided that it is best to launch a new operating model in Nigeria, leveraging the extensive distribution network, and the expertise in the local market that AFDL possesses.”
Anjan Patole, Managing Director of SBFN, also expressed delight about the transaction pointing out the new owner would expand the business.
He said, “The sale of our beverage operations in Nigeria signifies a fantastic opportunity to leverage on Chanrai’s Group expertise to expand the business and talents of our people beyond our current potential. Their extensive global systems, agility to changing market needs with a focus on African consumers are all qualities that aligned with that of our business here.”
Sherring Thekekkara, the CEO of AFDL said, “Leveraging experience, streamlining supply chain, enhancing manufacturing, consistent innovation and improving seamless route to market etc will ensure that the Nigerian consumer continues to enjoy their favourite brands “Lucozade” and “Ribena” even more passionately.”
Back story
- Japanese firm, Suntory Beverage & Food Limited (SBF) became the brand owner of Ribena and Lucozade in 2016 after it partially acquired the brand from GlaxoSmithKline Consumer Nigeria Plc (GSK).
- The brand was completely sold out to SBF after the GSK’s Board approved the binding offer to sell its drinks bottling and distribution business.