Nigerian Breweries Plc, Nigeria’s top brewer in strategic move to acquire major share of Distell
By Zion Rufus
Poised to further expand its products potfolio while maintaining a steady hold on market leadership, Nigerian Breweries Plc is currently in a strategic move to acquire a major share of Distell International.
Consequently, the brewery giant has approached its shareholders for approval to acquire an 80 percent stake in Distell Wines and Spirits Nigeria Limited, a subsidiary of Distell International Limited, which is entirely owned by Heineken Beverages.
Distell Nigeria, founded in 2018 with its headquarters in Lagos, currently operates under the umbrella of Distell International Limited, holding an 80 percent share. The move was revealed through a corporate filing on the Nigerian Exchange Limited (NGX), indicating Nigerian Breweries’ intent to extend its business scope and delve into the wines, spirits, and flavored alcoholic beverages market.
As part of the proposed acquisition, Nigerian Breweries seeks shareholders’ consideration for the import business of Heineken Beverages (Holding) Limited in Nigeria. This includes the license to market, distribute, and sell imported products, along with the potential to produce any of the imported brands locally.
The company’s board has decided to convene an extraordinary general meeting, offering shareholders the opportunity to deliberate on and approve the acquisition. The statement released by Nigerian Breweries highlights the alignment of this strategic move with the company’s objectives to expand its current product portfolio beyond beer.
Authoritative industry sources disclosed to MARKETING EDGE weekend that the deal, when finally actualised will see the multinational brewer with legendary hold on the Nigerian beer market slugging it out again with Diageo which local appellate company, Guinness Nigeria Plc has long been making waves in the Nigerian spirits market.Our sources disclosed further that in line with Heineken marketing tradition of excellence, no stone would be left unturned in creating positive distruptions in the Nigerian wines and spirits market in not too distant future.
Nigerian Breweries was said to have expressed confidence in the growth opportunities and long-term profitability associated with the proposed acquisition. While the process is subject to applicable regulatory approvals, the company envisions the venture as a crucial step toward diversification and an evolution in its offerings.
Distell Nigeria boasts a diverse brand portfolio that includes well-known names such as Amarula, JC Leroux, Nederburg, Drostdy Haf, 4th Street, Bain’s, Knights, Chamdor, Hunters, and Savanna. The addition of these brands to Nigerian Breweries’ repertoire reflects a strategic move to cater to evolving consumer preferences and strengthen its presence in the competitive beverage market.
RECOMMENDED ARTICLES
Comment
No comments found.