Nigeria: Guinness Nigeria strengthens distribution network in Northern Nigeria

Guinness Nigeria Plc has significantly strengthened its distribution network across several states in Northern Nigeria, a strategic move following the divestment of its former majority shareholder, British drinks giant Diageo, Naijapreneur.com reported on November 19.

Girish Sharma, Guinness Nigeria’s Managing Director and Chief Executive Officer, confirmed the successful expansion in an exclusive interview in Abuja, highlighting a renewed focus on market penetration under the company’s new strategic direction.

The expansion comes on the heels of the landmark transition in ownership, which saw Diageo complete the sale of its 58.02% controlling stake in Guinness Nigeria to the Singapore-headquartered conglomerate, Tolaram, in late 2024. The sale marked a fundamental shift in the company’s operating model. While Diageo retains ownership of the iconic brand and licenses production to Guinness Nigeria under a long-term agreement, Tolaram has taken the reins of local manufacturing, marketing, and distribution.

Guinness Nigeria’s aggressive push into the Northern states is largely seen as an immediate synergy resulting from the Tolaram acquisition. Tolaram is a dominant force in the Fast-Moving Consumer Goods (FMCG) sector in Nigeria, possessing one of the most extensive and sophisticated distribution networks in West Africa through its subsidiary, Multipro.

By leveraging Tolaram’s deep operational expertise and established supply chains, Guinness Nigeria has been able to quickly penetrate new and underserved markets in the North. This regional focus is critical for driving volume growth and stabilizing revenues amidst challenging macroeconomic conditions, including currency volatility and rising input costs, which have impacted manufacturing businesses nationwide.

The expansion strategy moves beyond major urban centers to establish a stronger foothold in rural and peri-urban areas, ensuring that Guinness products are more readily available to a wider consumer base. This localised approach is designed to enhance market share and build brand loyalty in a region historically seen as having significant untapped potential.

Mr. Sharma’s confirmation underscores a new, growth-oriented era for Guinness Nigeria. The company is poised to capitalise on Tolaram’s local experience and strong commercial footprint to unlock greater operational efficiencies, from supply chain management to final-mile delivery.

While Diageo shifts its local model to focus more squarely on its international premium spirits portfolio via a separate wholly-owned entity, Guinness Nigeria—under the majority stewardship of Tolaram—is positioned for a fresh phase of indigenous growth, leveraging its local manufacturing base and deepening its commitment to the Nigerian market through expansive distribution.