By PETER EGWUATU

Guinness Nigeria Plc has explained that the increase in its investment in capacity expansion was as a result of increased demand for its products , even as its dividend payout to shareholders in 2014 financial period reduced, following a strategic decision made by the management.

The company explained that this decision was taken following strategic management plan that would see it increase dividend payout to shareholders in the future, just as it disclosed plans to increase production of Orijin to meet the high demand of the product in the country.

Speaking to journalists during a facility tour at Guinness Nigeria Plc in Lagos, Corporate Relations Director of the company, Mr.Sesan Sobowale said: “The company has decided to retain part of the profit made in 2014 to expand its production, instead of incurring interest from the banks. We don’t want interest payment to banks to keep growing, so that is why it was decided that part of our profit should be retained and used for further expansion that will attract higher profit and thus enhance dividend payout.’’

The company paid a total of N4.8 billion in the financial year ended 30th June, 2014 as against N10.5 billion in the corresponding period of 2013, representing 320kobo per share as against 700 kobo per share respectively.

Speaking on the company’s new product Orijin, Sobowale said “Following the increasing demand for the product an expansion of the plant has already commenced to ensure there is wide spread availability. We work ahead of distribution as in the last couple of months there has been increased promotional activity. The product has varieties and will contribute its quota to the company’s bottom line’’.

He added that Orijin has two varieties and people should not take them as one product. There is one that is bitter with less sugar and the other one that has a little more of sugar. We are working with other stakeholders to actively promote responsible consumption of our brands.

In his words, “The Orijin drink comes in two variances, ‘Orijin bitters and Orijin ready to drink’ known as ‘Orijin beer’ made from our traditional roots and herbs. We are bringing the herbal and food flavored drink conceived from the home of Guinness to the people and the reason is satisfy Africans. As a heritage drink coming from the roots, the people will endorse and appreciate the drink.”

On community development, he said, “We are also very committed to the development of communities where we live and operate. Through our flagship social investment programme, ‘Water of Life’, we have provided portable water to over one million people across Nigeria. We have always remained committed to Nigeria even when harsh economic realities at some points in the history of our country had forced many companies to divest from Nigeria.

On Adulteration

Sobowale also emphasized on the issue of adulteration, stating that it is a global phenomenon and any brand that is successful will face adulteration. He said that Guinness as a brand has existed for over 250 years on the strength of quality. “We have taken steps to build in an anti counterfeit measures to combat adulteration, but it’s obvious that you can differentiate original from fake when you see this product. Also distributors, retailers and beer parlour owners have been educated on how tob identify the fake. These are our precautionary measures since we put out the product to market over a year ago”he added.

On health

“We are assuring the public that the quality is very good to health because Guinness has a stamp of quality on it. It has been prepared to the highest quality standard and it has been certified by NAFDAC. The Director General of NAFDAC has inspected the factory site and was impressed.It will interest you to note that Orijin drink clinched the year’s ADVAN Awards for Marketing Excellence, Innovation Category and Marketing World Awards for Excellence in Marketing Innovation.”