Guinness Nigeria Plc, a leading player in Nigeria’s beverage industry, has announced its strategic decision to discontinue the importation and distribution of several Diageo international premium spirits starting from April 2024. This significant shift is in line with Guinness Nigeria’s long-term growth strategy and aligns with Diageo Plc’s plan to establish a new, wholly-owned spirits-focused business to manage the importation and distribution of its premium spirits portfolio in West and Central Africa, with Nigeria as a key hub.
The premium spirits affected by this change include renowned brands such as Johnnie Walker, Singleton, Baileys, and others, which were imported under the 2016 sale and distribution agreement with Diageo. This strategic pivot not only positions Guinness Nigeria for growth but also reduces its foreign exchange requirements, helping to mitigate the impact of foreign exchange scarcity and exchange rate volatility on its financial performance.
John Musunga, the managing director and CEO of Guinness Nigeria, emphasized the importance of this transformation. He stated, “This change will better position Guinness Nigeria to focus on our core business, which has consistently delivered growth over the years, despite the challenging external environment. Our investments in expanding capacity at our breweries in Ogba Lagos state and Benin Edo state will further support the increasing demand for our beer and highly successful local spirits brands.”
Furthermore, this transition is expected to strengthen the organization’s manufacturing, marketing, and distribution capabilities while reducing its exposure to foreign exchange fluctuations. It is seen as a step towards enhancing sustainable growth and value creation for all stakeholders.
In the financial year ending on June 30, 2023, Guinness Nigeria’s portfolio of imported Diageo spirits products amounted to N14 billion, representing six percent of its total revenue. Despite this strategic change, the company will continue to manufacture and distribute its full range of non-alcoholic beverages, beer, ready-to-drink (RTDs), and locally produced spirits. Guinness is well-positioned as a leading player in the total beverage alcohol industry, leveraging its expanded production capacity.
Guinness also clarified that there will be no changes in Diageo Plc’s shareholding in Guinness Nigeria, emphasizing that Diageo remains a key shareholder in the company.
