Guinness Nigeria Plc has extended the timeline for change in the distribution model for imported Diageo International Premium Spirit (IPS) brands to 2025.
This was contained in a statement made available to the Nigerian Exchange Limited seen by Nairametrics.
According to the brewer, following preliminary steps taken by Guinness Nigeria PLC and Diageo since the initial announcement, it has become apparent that the transition to the new distribution model is taking longer than anticipated.
It noted that as a result, the completion of the implementation of the separation of the IPS brands from Guinness Nigeria’s business, initially scheduled for April 2024, will now become effective during the course of Guinness Nigeria Plc’s Financial Year 2025.
The company said that during this transition period, Guinness Nigeria Plc will continue to import and distribute Diageo international premium spirits products, including Johnnie Walker, Singleton, and Baileys, among others, under its existing 2016 Sale & Distribution Agreement with Diageo plc.
- “The separation of the IPS brands is part of Guinness Nigeria’s long-term growth strategy and aligns with Diageo plc’s decision to establish a new, wholly-owned spirits-focused 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.
- There are no changes to Diageo plc’s shareholding in Guinness Nigeria, and Diageo remains a key shareholder of Guinness Nigeria.
- Guinness Nigeria Plc remains committed to manufacturing and distributing its full portfolio of non-alcoholic drinks, beer, ready-to-drink (RTDs), and locally produced spirits, including Orijin, Captain Morgan Gold, Gordon’s Moringa, and Smirnoff X1 Choco,” it said.
Adebayo Alli, Managing Director/CEO, of Guinness Nigeria Plc., said the strategic transition will empower Guinness Nigeria to sharpen its focus on our core operations, which have consistently demonstrated resilience and growth despite external challenges.
- Our investments in expanding capacity at our breweries in Ogba, Lagos State, and Benin, Edo State, have positioned us to meet the increasing demand for our renowned beer and locally beloved spirits brands.
- While the initial timeline for the separation of our international premium spirit brands from Guinness Nigeria’s business has been extended, rest assured that Guinness Nigeria remains steadfast in its commitment to delivering sustainable value to our stakeholders.
- Our focus remains on maximizing our manufacturing, marketing, and distribution capabilities across our diverse portfolio of alcoholic and non-alcoholic beverages. We appreciate the continued support of our shareholders and stakeholders as we work towards achieving our strategic objectives.”
Nairametrics recently reported that Guinness Nigeria Plc announced that it will stop the importation and sale of certain Diageo international premium spirits products like Johnnie Walker, Baileys, Singleton, and others imported under its 2016 sale and distribution agreement with Diageo Plc.
- Guinness in its notification said that the move is in line with its long-term growth strategy, and is also in alignment with Diageo Plc’s decision to establish a new, wholly owned spirits-focused business to manage the importation and distribution of its international spirits portfolio in Nigeria as well as West and Central Africa.
- It also stated that it will continue to manufacture and distribute its full portfolio of non-alcoholic drinks, beer, and locally produced spirits, including Orijin, Captain Morgan Gold, Gordon’s Moringa, and Smirnoff X1 Choco, fully utilising its asset base.
