NIGERIA – Nigerian Breweries Plc (NB) has successfully acquired an 80% controlling stake in Distel Wines and Spirit Nigeria Limited.
This strategic move aims to expand NB’s product offerings beyond beer to include wines, spirits, and flavored alcoholic beverages, marking a significant milestone in the company’s growth trajectory.
The acquisition was finalized following the South Africa Reserve Bank (SARB) approval. This approval allowed Nigerian Breweries to acquire shares from the South African entity Distell International Limited, now known as Heineken Beverages Holdings Limited, in Distell, Nigeria.
Additionally, it encompasses the import business of Distell International Limited in Nigeria.
Hans Essaadi, Managing Director of Nigerian Breweries, stated: “This acquisition is part of efforts to provide access to a complementary multi-category portfolio of fast-growing brands in the wines and spirits market segment. We are excited to have the process completed and can’t wait to see how this transforms our business.”
Distell Nigeria is known for producing wines and ciders locally under a license from Heineken Beverages. With the acquisition, Nigerian Breweries will now have access to both local production and importation of renowned brands from South Africa.
These brands include Amarula Cream Liqueur, Nederburg, Drostdy-Hof, 4th Street, Bain’s Whiskey, Knight Whiskey, Scottish Leader Whiskey, Chamdor wine ranges, Hunters, and Savanna.
Steve Ighorimoto, Managing Director of Distell Nigeria, highlighted, “We are excited to be a part of Nigerian Breweries. We share a solid track record of growth, with a highly engaged, dynamic, experienced, and diverse team.
These changes will strengthen the organization’s manufacturing, marketing, and distribution capabilities while ensuring sustainable growth and maximum value creation for all stakeholders.”
This acquisition follows Nigerian Breweries’ recent financial performance. The company reported revenue of N227 billion for the first quarter ending March 31, 2024, marking an 84 percent increase compared to the same period in 2023.
The unaudited results released to the Nigerian Exchange Limited (NGX) also showed a more than 1000 percent growth in operating activities during the review period.
This impressive performance was achieved despite the challenging macroeconomic environment characterized by rising inflation and foreign exchange volatility.
Hans Essaadi reaffirmed the company’s confidence in Nigeria’s market potential.
“Despite the continued challenging operating environment with high-level inflation and pressured consumer income spending, Nigerian Breweries maintains an unwavering belief in the positive long-term market fundamentals of Nigeria,” he said.
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