One of the leading brewers n the country, Guinness Nigeria Plc has agreed to acquire the rights to distribute McDowell’s’, a mainstream spirits brand of United Spirits Limited (USL) in Nigeria.
The Corporate Relations Director of Guinness Nigeria, Sesan Sobowale in a release issued on Wednesday, January 13, said USL is an Indian mainstream spirits business which is also a subsidiary of Diageo Plc.
He said the transaction will become effective on February 1, 2016.
Industry analysts believe the move by Guinness Nigeria is part of strategic efforts to deepen its leadership in the Nigerian market especially in other category other than beer..
It will be recalled that Guinness Nigeria Plc recently acquired the exclusive distribution rights to Diageo plc’s International Premium Spirits (IPS) brands in Nigeria.
As part of the transaction, Guinness Nigeria will also take over various assets including the current inventory of Diageo Brands Nigeria Limited, the wholly-owned Diageo business which currently distributes and markets the IPS brands in Nigeria.
The consideration for the transaction was put at N2.35 billion with the transaction expected to be concluded by 31 December 2015 and the new distribution agreement for the IPS brands to become effective on 1 January 2016 subject to receiving all regulatory approvals.
The Managing Director/CEO of Guinness Nigeria Plc, Peter Ndegwa, was quoted as saying that “The transaction will facilitate the achievement of Guinness ambition to create the best performing, most trusted and respected consumer products company in Nigeria by leveraging the strength of our unparalleled portfolio of beer, adult premium non-alcoholic drinks (APNADs), ready to drink (RTDs) as well as spirits.
”The integration of the Diageo IPS brands with the Guinness Nigeria brand portfolio best fits our strategy of filling the gap in our total beverage alcohol portfolio, and allows us to compete across segments within the market.”
