Nigerian Breweries acquires full ownership of Distell Wines and Spirits Nigeria
NBL has completed the acquisition of the remaining 20% stake in Distell Wines and Spirits Nigeria, securing full ownership and streamlining operations to expand its presence in the wine, spirits, and ready-to-drink segments.
NIGERIA – Nigerian Breweries Plc (NBL) has acquired the remaining 20% stake in Distell Wines and Spirits Nigeria Limited (DWSN), securing full ownership of the company.
The deal, for an undisclosed amount, involved buying out Ekulo International and Next International Nigeria, which each held a 10% share in Distell Nigeria.
Following the acquisition, Distell’s operations have shifted from rented facilities to Nigerian Breweries’ production sites, enhancing efficiency and expanding its footprint in the wine, spirits, and ready-to-drink beverage categories.
The company expects this move to streamline operations, boost production capacity, and accelerate decision-making in its strategy to diversify beyond beer.
“The full acquisition will help to reduce complexities and make decision making faster in NB’s ambition to expand beyond beer,” Nigerian Breweries stated in a regulatory filing.
Nigerian Breweries, in which Heineken holds a majority stake, had previously acquired an 80% share in Distell Nigeria in June 2023, along with 100% of Heineken Beverages’ import business in Nigeria. This followed Heineken’s broader acquisition of Distell, which was finalized two years ago.
Distell’s locally produced brands include Chamdor, 4th Street, Hunters Dry, and Savanna, while Nigerian Breweries also imports various wines and spirits such as Amarula Cream Liqueur, Nederburg wines, Drosty Hoff, and Bain’s whisky.
Heineken had invested approximately EUR2.4 billion (US$2.53 billion) in the creation of Newco, a 65%-owned entity managing its South African operations and export businesses across nine African markets, including Kenya.
Newco also took control of Distell’s African operations and a 59.4% stake in Namibian Breweries.
The acquisition was finalized as Nigerian Breweries reported an 81% surge in revenue for the 2024 financial year, reaching N1.1 trillion (US$728.4 million), up from N599.6 billion (US$397.05 million) in 2023.
The company credited this growth to strategic pricing, market expansion, product innovations, and operational efficiencies.
Gross profit rose by 51% to N320 billion (US$211.9 million), while operating profit increased by 59% to N70 billion (US$46.35 million), driven by cost management and process optimization.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
