Guinness Nigeria Plc (NGX: GUINNESS) will continue the importation and distribution of Diageo International Premium Spirits products into 2025 financial year.
The company in a regulatory filing on Tuesday said that the separation of Guinness Nigeria’s business and that of Diageo has taken longer than expected.
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GUINNESS had in October 2023 announced that that, with effect from April 2024, it will no longer import or distribute certain Diageo international premium spirits products, including Johnnie Walker, Singleton, and Baileys and others imported under its 2016 Sale & Distribution Agreement with Diageo plc.
The delay in the transition to the new arrangements means that the April 2024 completion date is no longer feasible. Accordingly, Guinness Nigeria Plc have given notice of the extension of the separation to now become effective during the course of Guinness Nigeria Plc’s Financial Year 2025.
The separation is in line with Guinness Nigeria’s long-term growth strategy.
Guinness Nigeria will continue to manufacture and distribute its full portfolio of non-alcoholic drinks, beer, ready-to-drink (RTDs) and locally produced spirits, including inter-alia Orijin, Captain Morgan Gold, Gordon’s Moringa, and Smirnoff X1 Choco, fully utilising its asset base following the expansion of its production capacity in recent years as a foremost total beverage alcohol player.
Diageo Plc will 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. Nigeria will serve as a key hub of that business.
In the financial year ended 30 June 2023, the revenue related to Guinness Nigeria’s portfolio of imported Diageo international premium spirit products was NGN14billion, constituting approximately 6% of Guinness Nigeria’s total revenues.
There are no changes to Diageo Plc’s shareholding in Guinness Nigeria Plc as a result of this separation
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
