NIGERIA – Tolaram Group, a Singapore-based consumer goods company, has acquired Diageo’s 58 percent stake in Guinness Nigeria for a share price of N81.60 (US$0.05) per share.  

Despite the stake sale, Guinness Nigeria will retain the rights to manufacture and distribute the Guinness brand and other Diageo brands, including Johnnie Walker, Singleton, and Baileys. 

Diageo, in a statement, announced it is creating a “new model for Guinness in Nigeria,” collaborating with Tolaram under new, long-term license and royalty agreements for its locally manufactured ready-to-drink and mainstream spirits products. This move aligns with Diageo’s strategy to operate a flexible and asset-light beer operating model. 

Debra Crew, Diageo CEO, expressed enthusiasm about the partnership: “I’m excited to announce our new partnership with Tolaram. Guinness has been Nigeria’s favorite beer for nearly 75 years.  

Tolaram shares this passion for Guinness and for Nigeria, making them the perfect partners as we continue to grow our business and seek to delight even more consumers in the country.” 

The acquisition is expected to be finalized in Diageo’s fiscal 2025, subject to regulatory approvals in Nigeria. 

Tolaram, established in 1948, operates across Africa, Asia, and Europe. In Nigeria, it collaborates with multinational companies such as Indofood, Kellanova, Dano, and Colgate-Palmolive.  

Sajen Aswani, Tolaram’s chief executive, highlighted the strategic importance of the partnership: “Our partnership with Diageo to jointly grow Guinness Nigeria underscores our commitment to build on our strong presence and heritage in Nigeria.  

We take a long-term view on all our investments, and this partnership reflects our optimism about the exciting opportunities that lie ahead across the continent.” 

In October, Diageo announced that it would cease using Guinness Nigeria to import and distribute its premium spirits. However, plans to establish a wholly-owned subsidiary for its spirits brands in West and Central Africa have been delayed until 2025. 

For the nine-month period ending March 31, 2024, Guinness Nigeria reported a 28 percent year-on-year increase in revenue to N220.3 billion (US$145.78M).  

Operating profit rose 27 percent to N22.21 billion (US$14.69M). However, the company faced unrealized forex losses amounting to N81 billion (US$53.60M), attributed to the continued devaluation of the Naira. 

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