NIGERIA – Nigerian Breweries (NB) Ltd, the largest brewing company in Nigeria, is set to start the importation, marketing and distribution of wines, spirits and cider products, once a new deal with parent company Heineken is finalised.
Under the deal, Nigerian Breweries is expected to spend N7.01 billion (US$8.4 million) to acquire two Nigerian subsidiaries of Heineken, a move that is expected to bring all of Heineken’s operations in Nigeria under one roof.
A statement from NB’s board of directors disclosed that the brewer is seeking to acquire 80 percent shareholding in Distell Wines and Spirits Nigeria (DWSN) and 100 per cent import business from Heineken Beverages Limited.
Once fully implemented, NB will have exclusive rights to import Heineken Beverages’ wines, spirits and ciders brands from South Africa.
NB will also have the right to licence to market and distribute the products in Nigeria, including the right to locally produce any of the imported brands.
Additionally, DWSN will become a subsidiary of Nigeria’s largest brewing company by market share, while the operations of NB will be expanded to include importation, marketing, and distribution of wines, spirits, and cider products.
The board of directors of NB had earlier reviewed the terms of the acquisition expressing satisfaction with the conditions, announcing plans to recommend the acquisition proposal to the shareholders.
“It provides Nigerian Breweries with a complimentary multi-category portfolio and strengthens the company’s market share in the wider beverages market as it expands its product offerings to a wider consumer segment,” the board stated.
The final decision regarding the acquisition will be announced after the shareholder meeting scheduled for next month.
The company emphasized that this strategic move aligns with its objective to diversify its product portfolio beyond beer, encompassing wines, spirits, and flavoured alcoholic beverages.
This initiative is expected to present growth prospects and contribute to the company’s long-term profitability.
DWSN became part of Heineken following the Dutch brewer’s acquisition of its South Africa-based parent company Distell Group in 2021.
The transaction, which was successfully completed in April this year gave Heineken Beverages an 80 per cent equity stake in DWSN.
The remaining 20 per cent is held by Next International Limited and Ekulo International Limited, which hold 10 per cent stake each.
DWSN’s diverse brand portfolio features well-known names such as Hunters, Amarula, JC Leroux, Chamdor, Savanna, Nederburg, Knights and others.