Nigerian Breweries completes acquisition of Distell Wines and Spirits, achieving full ownership after purchasing an additional 20% stake. The move aims to simplify operations and diversify product offerings in the beverage sector, with an emphasis on enhancing production capacities. Key brands include Chamdor and Savanna, amidst recent financial challenges due to currency fluctuations.
Nigerian Breweries, a subsidiary of Heineken N.V., has successfully acquired a 20 percent stake in Distell Wines and Spirits Nigeria Limited. This acquisition enables Nigerian Breweries to establish full ownership of the company, after previously acquiring 80 percent of shares pending approval from South Africa’s Reserve Bank. The approval facilitated the purchase of Heineken Beverages Holdings Limited’s shares in Distell Nigeria.
The recent acquisition was finalized via a sale and purchase agreement with minority shareholders, Ekulo International Limited and Next International Nigeria Limited, each holding 10 percent of the company’s shares. Nigerian Breweries stated that this acquisition will “help to reduce complexities” and enhance its decision-making process, allowing for diversification into the wine market and the potential to generate increased value within the local beverage industry.
The company has relocated its manufacturing operations to its own facility, which is expected to boost production capacity for Distell’s brands. Utilizing Nigerian Breweries’ established infrastructure will enable Distell Wines and Spirits Nigeria to achieve economies of scale. CEO Hans Essaadi emphasized the strategy’s aim to access a broader portfolio of rapidly growing brands in the wines and spirits market.
Distell Wines and Spirits Nigeria is known for brands such as Chamdor, Hunters Dry, 4th Street, and Savanna. In conjunction, Nigerian Breweries also offers imported brands including Drosty Hoff and Nederburg wines, Amarula Cream Liqueur, and Bain’s Whisky. Notably, Nigerian Breweries faced a substantial net loss of N145 billion last year due to naira devaluation, with total assets slightly increasing to N1.14 trillion.
The full acquisition of Distell Wines and Spirits by Nigerian Breweries marks a significant strategic advancement aimed at diversifying its product portfolio beyond beer. This move is expected to simplify operational complexities while positioning Nigerian Breweries to capitalize on growth opportunities within the rapidly evolving wines and spirits market. Furthermore, enhanced production capabilities through the establishment of direct manufacturing operations will support this transition.
Original Source: www.premiumtimesng.com
