Forex: Guiness To Withdraw Baileys And Other Drinks From The Nigerian Market

Guinness Nigeria Plc has said it will concentrate on its core products in manufacturing, distribution and marketing, while dropping the importation of premium spirits in order to ease Foreign Exchange pressure.

John Musunga, Managing Director/CEO, Guinness Nigeria Plc, revealed this during a media tour of its factory in Lagos.
He said there is going to be a strategic shift in its distribution model for imported premium spirits, effective April 2024.

According to him “The Company 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 and 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.”

He further noted that 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.

Musunga stated further: “This change positions Guinness Nigeria to focus on our core business, which has consistently delivered growth despite external challenges. Our focus on core strengths will benefit from recent investments in expanding brewery capacity in Ogba, Lagos State, and Benin, Edo State, in response to growing demand for our beer and successful local spirits brands. This strategic adjustment will strengthen our manufacturing, marketing, and distribution capabilities while reducing forex exposure, ultimately enhancing sustainable growth and value for all stakeholders.”