Nigerian Breweries has fully acquired Distell Wines and Spirits Nigeria, having purchased an additional 20% stake. This follows an earlier acquisition of 80% approved by South Africa’s Reserve Bank. The move aims to streamline operations and diversify offerings in the beverage market, despite reporting a significant net loss last year.
Nigerian Breweries, a subsidiary of Heineken N.V., has acquired an additional 20 percent stake in Distell Wines and Spirits Nigeria Limited, achieving full ownership of the company. This follows their earlier purchase of 80 percent of Distell’s shares, which was approved by South Africa’s Reserve Bank, thereby facilitating the acquisition of shares from Heineken Beverages Holdings Limited.
The acquisition was confirmed following a sale and purchase agreement with minority stakeholders, Ekulo International Limited and Next International Nigeria Limited, both of which previously held a 10% stake. With the complete ownership secured, Nigerian Breweries aims to streamline its operations and enhance decision-making processes, diversifying its offerings to include wines alongside its beer portfolio.
In line with this strategy, Nigerian Breweries has moved its manufacturing operations to its own plant, which is expected to increase production capabilities for the Distell Wines and Spirits Nigeria brands. The CEO of Nigerian Breweries, Hans Essaadi, noted last June that this acquisition supports their efforts to access a diverse and growing portfolio in the wine and spirits market, as well as capture significant growth opportunities in this sector.
Noteworthy brands under Distell Wines and Spirits Nigeria include Chamdor, Hunters Dry, 4th Street, and Savanna, while Nigerian Breweries’ imported brands encompass Drosty Hoff, Nederburg wines, Amarula Cream Liqueur, and Bain’s Whisky. In the previous fiscal year, the company reported a net loss of N145 billion due to currency depreciation, despite total assets slightly increasing to N1.14 trillion.
Nigerian Breweries has successfully completed its acquisition of Distell Wines and Spirits, strengthening its position in the beverage market. The company seeks to enhance its operational efficiency and product diversity, particularly in the growing wines and spirits segment. This strategic move, alongside the relocation of manufacturing operations, aims to capitalize on market opportunities despite recent financial setbacks due to currency devaluation.
Original Source: www.premiumtimesng.com
