Guinness Nigeria Plc, has announced an extension to the separation timeline for its imported spirits, due to unforeseen circumstances. In a notice to the Nigerian Exchange Group and the general public, Guinness Nigeria Plc detailed the status of its business separation from Diageo and the extension of the transition period.
The initial announcement, dated October 5th, 2023, outlined plans for Guinness Nigeria Plc and Diageo to separate their businesses, with completion originally scheduled for April 2024. However, due to unforeseen circumstances, the transition process has experienced delays, rendering the April 2024 deadline unattainable.
“The implementation of the business separation was initially scheduled to be completed by April 2024. However, the transition to the new arrangements is taking longer than expected, hence the April 2024 completion date is no longer feasible,” the company said.
As a result, Guinness Nigeria Plc has officially extended the separation of the imported IPS brands from its business. The new effective date for the separation is now slated to occur during the course of Guinness Nigeria Plc’s Financial Year 2025.
“Accordingly, Guinness Nigeria Plc hereby gives notice of the extension of the separation of the imported International Premium Spirit (IPS) brands from Guinness Nigeria Plc’s business to now become effective during the course of Guinness Nigeria Plc’s financial Year 2025”
Despite the extension, Guinness Nigeria Plc reassured stakeholders that it will continue to import and distribute Diageo International Premium Spirits products, such as Johnnie Walker, Singleton, and Baileys, under its existing 2016 Sale & Distribution Agreement with Diageo Plc. This continuity aims to maintain stability in the market while the transition process unfolds.
“This update is to advise that Guinness Nigeria Plc will continue to import and distribute Diageo international Premium Spirits products, including Johnnie Walker, Singleton, and Baileys and others which are imported under its 2016 Sale & Distribution Agreement with Diageo plc until the transition process is completed,” Guinness disclosed.
The separation aligns with Guinness Nigeria’s long-term growth strategy and Diageo Plc’s decision to establish a new, wholly owned spirits-focused business to oversee the importation and distribution of its international premium spirits portfolio in West and Central Africa. Nigeria is poised to play a major role as a key hub for this business.
Importantly, the separation does not impact Diageo Plc’s shareholding in Guinness Nigeria Plc. Guinness Nigeria Plc remains steadfast in its commitment to delivering sustainable value to its esteemed stakeholders, emphasizing its status as a strong Nigerian company dedicated to driving strategic and operational excellence.
“Nigeria will serve as a key hub of that business. There are no changes to Diageo Plc’s shareholding in Guinness Nigeria Plc as a result of this separation,” the company added.
Industry analysts are closely monitoring developments surrounding the separation, particularly its implications for the Nigerian beverage market and the competitive landscape within the spirits sector. As Guinness Nigeria Plc progresses through its transition journey, stakeholders will be keenly observing how the company navigates challenges and capitalizes on opportunities to further strengthen its position in the market.
