Singapore-based consumer group Tolaram on Tuesday agreed to buy Diageo's 58.02% shareholding in Guinness Nigeria and enter into long-term licence and royalty agreements, the Nigerian brewer said in a statement.
Diageo, which makes Johnnie Walker Scotch and Smirnoff vodka, would retain ownership of the Guinness brand, which it will licence to Guinness Nigeria, along with locally manufactured Diageo ready-to-drink and mainstream spirits.
Regulatory Approvals
The transaction is expected to be completed during the 2025 financial year subject to regulatory approvals in Nigeria.
Guinness declared a loss before tax of 56 billion naira (€36 million) in the first quarter of this year compared with a 2.71 billion profit during the same period last year.
Guinness Nigeria
Guinness Nigeria, home of the first Guinness brewery outside of the British Isles, was established in 1950, making it one of the oldest serving manufacturing companies in Nigeria.
The first bottle of Guinness Foreign Extra Stout in Nigeria was brewed in Ogba Brewery in 1962, two years after Nigeria’s independence.
Three years later, in 1965, Guinness Nigeria was listed on the Nigerian Stock Exchange.
'Evolving Business Landscape'
In April, the board at Guinness Nigeria said it was committed to continuously evaluating its strategy in response to the 'evolving business landscape', to deliver returns to its shareholders and create long-term value for all stakeholders.
“While the current macroeconomic environment will continue to present challenges, I am confident in the resilience of our business and our ability to navigate the volatility. Our focus remains steadfast on innovation, and stepping up operational excellence to meet our consumers’ evolving tastes and preferences," said Adebayo Alli, managing director/CEO, Guinness Nigeria.
"Led by our strategic vision that prioritises long-term sustainability and shareholder value, we are poised to emerge even stronger."
Article by Reuters, additional reporting by Hospitality Ireland.
