Nigeria: Guinness Nigeria to cease import and sale of select Diageo products
Guinness Nigeria Plc has declared its intention to cease the importation and sale of select Diageo international premium spirit products. These products, including Johnnie Walker, Baileys, Singleton, and others, were imported under a 2016 sale and distribution agreement with Diageo Plc, More Branches reported on October 5.
This significant decision was revealed in a notification submitted by Guinness Nigeria to the Nigerian Exchange Limited (NGX) on Thursday. Guinness Nigeria stated that discontinuing these product lines would result in a 6% reduction in the company’s total revenue.
Guinness clarified that this move is a strategic part of its long-term growth strategy and aligns with Diageo Plc’s decision to establish a wholly owned spirits-focused business to oversee the importation and distribution of its international spirits portfolio in Nigeria, as well as West and Central Africa.
The company affirmed that it will continue to manufacture and distribute its complete range of non-alcoholic beverages, beer, and locally produced spirits, including Orijin, Captain Morgan Gold, Gordon’s Moringa, and Smirnoff X1 Choco, leveraging its asset base.
In a statement, Guinness Nigeria explained:
“Guinness Nigeria today announces that, effective from April 2024, it will discontinue the importation and distribution of specific Diageo international premium spirits products, including Johnnie Walker, Singleton, Baileys, and others, which were imported under its 2016 Sale & Distribution Agreement with Diageo plc. This move is in line with Guinness Nigeria’s 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.
“In the financial year ending on 30 June 2023, the revenue associated with Guinness Nigeria’s portfolio of imported Diageo international premium spirit products amounted to NGN14 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, including, among others, Orijin, Captain Morgan Gold, Gordon’s Moringa, and Smirnoff X1 Choco, fully utilizing its asset base following the expansion of its production capacity in recent years as a foremost total beverage alcohol player.
“There are no changes to Diageo plc’s shareholding in Guinness Nigeria, and Diageo remains a key shareholder of Guinness Nigeria.”
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