.jpeg "Guinness Nigeria will no longer import or sell specific Diageo products.")
In a press release issued by Guinness Nigeria, as a notification to the Nigerian Exchange and the wider public, it was stated that various products, such as Johnnie Walker, Singleton, Baileys, and others, were imported under the 2016 Sale & Distribution Agreement with Diageo plc. The spokesperson for Guinness Nigeria, Rotimi Odusola, signed the press release.
Guinness Nigeria has stated that this action is consistent with its overarching strategy for long-term expansion. Furthermore, it is in accordance with Diageo plc's determination to create a fresh, fully owned enterprise with a focus on spirits, which will oversee the importation and distribution of its esteemed international premium spirits portfolio in West and Central Africa, with Nigeria serving as one of the central locations.
According to the company's statement, during the fiscal year ending on June 30, 2023, the revenue generated from the imported Diageo international premium spirit goods in its portfolio amounted to NGN 14 billion, accounting for about 6% of Guinness Nigeria's overall revenues.
According to the statement, Guinness Nigeria intends to persist in the production and distribution of its complete range of non-alcoholic beverages, beer, ready to drink (RTDs), and domestically manufactured spirits.
The aforementioned goods, including Orijin, Captain Morgan Gold, Gordon's Moringa, and Smirnoff X| Choco, are part of the company's diverse range of offerings. This company has effectively leveraged its assets and expanded its manufacturing capacity in recent years, establishing itself as a prominent participant in the total beverage alcohol industry.
Nevertheless, there have been no alterations to the ownership of Diageo's shares in Guinness Nigeria, and Diageo continues to maintain its significant stake in the company as a crucial shareholder.
Guinness Nigeria has delineated certain advantages it will accrue subsequent to the alteration in its global distribution framework.
Guinness Nigeria has expressed its intention to prioritize its primary operations and leverage its expertise in the production, promotion, and distribution of non-alcoholic beverages, beer, ready-to-drink beverages, and domestically manufactured spirits. This strategic approach aims to bolster the company's long-term viability, expansion, and value generation for all parties involved with Guinness Nigeria.
According to the statement, this modification will facilitate the complete utilization of Guinness Nigeria's asset base and expedite the advancement of innovative local spirits offerings.
Based on the provided assertion, this strategic alteration serves to diminish the company's need for foreign currency and alleviate the adverse effects of persistent foreign currency scarcity and fluctuations in exchange rates on the company's financial performance.
Guinness Nigeria is a resilient Nigerian corporation that is dedicated to ensuring that its strategic and operational endeavors generate value for its esteemed stakeholders by enhancing the performance of Guinness Nigeria and maintaining business profitability.