By Efe Onodjae

Guinness Nigeria has announced a strategic shift in its distribution model for imported premium spirits, effective April 2024.

The company in a statement said it will no longer import or distribute certain Diageo international premium spirits, such as Johnnie Walker, Singleton, and Baileys, as well as others included in its 2016 Sale & Distribution Agreement with Diageo Plc.

This change aligns with both Guinness Nigeria’s long-term growth strategy and Diageo Plc’s decision to establish a wholly-owned spirits-focused business to manage its premium spirits portfolio across West and Central Africa, with Nigeria as a key hub.

In the fiscal year ending on June 30, 2023, revenue generated from Guinness Nigeria’s imported Diageo international premium spirits amounted to N14 billion, constituting roughly six percent of the company’s total revenues. Guinness Nigeria will, however, continue to produce and distribute its extensive range of non-alcoholic beverages, beer, ready-to-drink products, and locally manufactured spirits, including Orijin, Captain Morgan Gold, Gordon’s Moringa, and Smirnoff X1 Choco.

This move capitalizes on the expanded production capacity developed in recent years, reinforcing the company’s position as a leading total beverage alcohol provider.

It’s important to note that Diageo plc’s shareholding in Guinness Nigeria remains unchanged, with Diageo continuing to be a significant shareholder.

John Musunga, the MD/CEO, Guinness Nigeria,  emphasized that this strategic shift will empower Guinness Nigeria to concentrate on its core competencies in the manufacturing, marketing, and distribution of non-alcoholic beverages, beer, ready-to-drink products, and locally produced spirits. He said; “This realignment is expected to boost sustainability, growth, and value creation for all stakeholders of Guinness Nigeria. Additionally, it will reduce the company’s dependence on foreign exchange, mitigating the effects of currency fluctuations on its financial performance”.