Guinness Nigeria Gives Update on Plan to Cease Distribution of Baileys, Johnnie Walker, Others
- Guinness Nigeria has announced a significant change to its distribution model for imported Diageo brand
- The company said it has now extended the date planned to stop its imported Diageo International Premium Spirit brands
- It stressed that Diageo Plc's shareholding in Guinness Nigeria Plc is not affected as a result of this separation
Guinness Nigeria has announced an update to its initial announcement regarding the changes in the distribution model for imported Diageo International Premium Spirit brands.
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The company said it is now looking to extend the date it plans to stop importing some of its spirit brands to 2025 instead of the initial 2024.
Legit.ng had reported that the management of Guinness Nigeria Plc stated that despite economic headwinds that harmed its businesses in the most recent operating year, the company managed to scrape against all odds.
The company's reaction followed an earlier report that it would stop importing some international premium spirits products from April 2024.
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These include products like Baileys, Singleton, and Johnnie Walker that were imported by its 2016 Sale and Distribution Agreement with Diageo plc.
Guinness gives notice of extension
In its recent report, the company stated that it had taken preliminary steps towards implementing the business separation, which was initially scheduled to be completed by April 2024.
However, it stated that the transition to the new arrangements was taking longer than expected; hence, the April 2024 completion date was no longer feasible.
Announcing an extension, it stated:
“Accordingly, Guinness Nigeria Plc now gives notice of extending the separation of the imported International Premium Spirit (IPS) brands from Guinness Nigeria Plc’s business to become effective during Guinness Nigeria Plc’s Financial Year 2025.”
“This update is to advise that Guinness Nigeria Plc will continue to import and distribute Diageo International Premium Spirits products, including Johnnie Walker, Singleton, Baileys and others which are imported under its 2016 Sale & Distribution Agreement with Diageo plc until the transition process is completed.”
The company restated that the division is consistent with Diageo Plc's decision to form a new, wholly owned spirits-focused company to oversee the importation and distribution of its portfolio of premium international spirits in West and Central Africa and Guinness Nigeria's long-term growth strategy. One of the main hubs for that industry will be Nigeria.
It emphasised that this separation does not affect Diageo Plc's ownership of Guinness Nigeria.
Guinness speaks on plans to close operations
Legit.ng reported that contrary to several false rumours, Guinness Nigeria Plc, a division of Diageo Plc, has no plans to cease operations in Nigeria.
The management of Guinness Nigeria reportedly complained to Bloomberg in a recent report that it was having trouble getting dollars to repay foreign currency loans.
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Source: Legit.ng
