NIGERIA – Guinness Nigeria PLC, a subsidiray of beverage giant Diageo, has announced an extension to the timeline for its transition to a new distribution model for imported Diageo International Premium Spirit (IPS) brands.
The initial completion date, scheduled for April 2024, will now be effective during the course of Guinness Nigeria Plc’s Financial Year 2025.
The decision to extend the transition period comes after preliminary steps taken by Guinness Nigeria PLC and Diageo revealed that the process is taking longer than anticipated.
Despite the delay, Guinness Nigeria PLC will continue to import and distribute Diageo international premium spirits products, such as Johnnie Walker, Singleton, and Baileys, under its existing 2016 Sale & Distribution Agreement with Diageo plc.
The separation of IPS brands from Guinness Nigeria’s business is part of the company’s long-term growth strategy and aligns 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.
There will be no changes to Diageo plc’s shareholding in Guinness Nigeria, and Diageo remains a key shareholder of the company.
Adebayo Alli, Managing Director/CEO of Guinness Nigeria Plc, expressed confidence in the strategic transition, stating, “This strategic transition will empower Guinness Nigeria to sharpen its focus on our core operations, which have consistently demonstrated resilience and growth despite external challenges.”
He further emphasized the company’s commitment to delivering sustainable value to stakeholders and maximizing manufacturing, marketing, and distribution capabilities across its diverse portfolio.
The decision to extend the transition period follows Guinness Nigeria’s earlier announcement of discontinuing the importation and sale of certain Diageo international premium spirits products.
This move is in line with the company’s long-term growth strategy and supports Diageo Plc’s initiative to establish a new spirits-focused business for managing the importation and distribution of its international spirits portfolio in Nigeria, West, and Central Africa.
Guinness Nigeria PLC will continue to focus on manufacturing and distributing its full portfolio of non-alcoholic drinks, beer, ready-to-drink beverages, and locally produced spirits, leveraging its asset base to meet consumer demand effectively.
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