Guinness Nigeria to stop importation, sale of certain Diageo products

Guinness Nigeria on Thursday announced that, with effect from April 2024, it will no longer import or distribute certain Diageo international premium spirits products.

According to a press release which served as a notice to the Nigerian Exchange and the general public, signed by the spokesperson of Guinness Nigeria, Rotimi Odusola, these products include Johnnie Walker, Singleton, and Baileys and others imported under its 2016 Sale & Distribution Agreement with Diageo plc.

Guinness Nigeria said this move is in line with its long term growth strategy, and it 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 premium spirits portfolio in West and Central Africa, with Nigeria as one of the hubs.

The company added that in the financial year ended June 30, 2023, the revenue related to its portfolio of imported Diageo international premium spirit products was NGN 14 billion, constituting approximately 6% of Guinness Nigeria’s total revenues.

“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.

These products include inter alia Orijin, Captain Morgan Gold, Gordon’s Moringa, and Smirnoff X| Choco, fully utilising its asset base following the expansion of its production capacity in recent years as a foremost total beverage alcohol player.

However, there are no changes to Diageo’s shareholding in Guinness Nigeria, and Diageo remains a key shareholder of Guinness Nigeria.

Following the change in the company’s international distribution model, Guinness Nigeria has outlined some of the benefits it will derive.

Guinness Nigeria says it will be better positioned 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.

It added that the change will enable the full utilisation of Guinness Nigeria’s asset base and will accelerate innovation in local spirits products.

According to the statement, 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 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.”