Guinness Nigeria PLC has revealed that starting in April 2024, it will cease the importation and distribution of select Diageo international premium spirits products.
In a press release addressed to the Nigerian Exchange and the public, Guinness Nigeria’s spokesperson, Rotimi Odusola, has announced the removal of certain products from their portfolio.
Notable among these are Johnnie Walker, Singleton, Baileys, and others, originally imported under their 2016 Sale & Distribution Agreement with Diageo plc.
Guinness Nigeria has explained that this action is consistent with its overarching growth strategy and mirrors Diageo plc’s choice to establish a new, fully-owned entity specialising in spirits, tasked with managing the import and distribution of its international premium spirits range in West and Central Africa. Nigeria will play a pivotal role in this initiative.
According to the company, for the financial year concluding on June 30, 2023, the revenue attributable to its range of imported Diageo international premium spirit products stood at NGN 14 billion, making up approximately 6% of Guinness Nigeria’s overall revenues.
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‘Guinness Nigeria will continue to manufacture and distribute its full portfolio of non-alcoholic drinks, beer, ready to drink (RTDs) and locally produced spirits,’ the statement read in part.
Among these products are, for instance, Orijin, Captain Morgan Gold, Gordon’s Moringa, and Smirnoff X| Choco. This decision leverages the company’s expanded production capacity in recent years as it solidifies its position as a leading player in the total beverage alcohol industry.
The news also confirms that Diageo plc’s ownership stake in Guinness Nigeria remains unaffected, with Diageo maintaining its prominent position as a key shareholder.
Guinness Nigeria has highlighted some of the advantages it expects to gain as a result of its modified international distribution model.
Guinness Nigeria states that it will be better equipped to concentrate on its core competencies, including the production, marketing, and distribution of non-alcoholic beverages, beer, RTDs, and locally sourced spirits. This realignment is aimed at bolstering sustainability, fostering growth, and creating added value for all stakeholders involved with Guinness Nigeria.
Lastly, Guinness Nigeria underscored that this change will enable the company to maximize the utilisation of its asset base and speed up innovation in the realm of local spirits products.
According to the statement, this strategic realignment curbs the company’s foreign exchange requirements, effectively countering the adverse impacts of ongoing foreign exchange scarcity and exchange rate volatility on the company’s financial performance.
‘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.’