“We Will Sell What We Produce Here”: Guinness to Set Up New Business in Nigeria Amid Exit Rumour
- The MD of Guinness has revealed that the company is likely to add new products to its product line
- He said the company would consider investing in spirits due to its seamless distributive nature
- He revealed that the new business may not be called Guinness but will maintain its domain in Nigeria
The Managing Director/Chief Executive Officer of Guinness Nigeria Plc, John Musunga, has said the company may add new products to its product line.
In an interview with Independent.ng, he disclosed that the company may invest in spirits, as it is easier and costs less to distribute.
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In an earlier report by Legit.ng, the company had said despite economic headwinds that harmed its businesses in the most recent operating year, the company managed to survive against all odds.
A hub for West African alcoholic beverages
The CEO noted that the new company aims to turn Nigeria into a hub for West African alcoholic beverages.
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The CEO added that the workers will greatly benefit from the company's plan to act as a hub for the global spirit trade.
“We are still going to produce spirit here. We are not going to be selling those that are imported but, we will be selling what we produce here, we will be selling here and others that intend to come.
“We will still be a spirit organization. We have a team that markets spirit, but the new team may not be called Guinness Nigeria, but, we will still maintain domain in Nigeria
“The Spirit Business is about 6% of our revenue. But, those spirits imported contributed to about 12% in our forex demand.”
He stated that the company wants its two businesses to succeed independently.
He emphasised that the change does not means the business would cease as claimed in some quarters.
Musunga explained that it simply means that the business landscape of Nigeria is being introduced to its worldwide spirit brands, which have a sizeable portfolio of spirits, beers, and other items to develop.
Charles Abuede, a financial analyst said the recent developments surrounding Guinness Nigeria and its parent company, Diageo, have raised concerns among Nigerians and stakeholders alike.
These developments, he said, highlight the challenges and inconsistencies in foreign exchange (FX) policies in the country, which have compelled several multinational corporations to make significant decisions in recent times.
He added that this situation is a cause for concern on several fronts.
He said:
What's also evident is the trend among major players in the consumer goods sector, who are announcing substantial shifts and developments in their operations, driven by meticulous analyses conducted by their parent companies regarding their activities in Nigeria.
This trend may raise questions about whether these companies are considering exiting the Nigerian market or exploring alternatives to enhance their profitability and facilitate dividend repatriation.
Guinness Nigeria ex-employee takes company to court, becomes N52.5m richer
Earlier, Legit.ng reported that the National Industrial Court in Port Harcourt asked Guinness Nigeria Plc to pay his former employee, Bright Nwosu, a total of N52.45 million.
Nwosu, a former Sales Executive with Guinness Nigeria Plc in 2004, pursued legal action following the termination of his employment on September 18, 2019.
The lawsuit marked NICN/PHC/108/2019 was brought before Justice Nelson Ogbuanya.
Source: Legit.ng
