"Business Will Continue": Guinness Nigeria Speaks on Alleged Exit From Nigerian Market

"Business Will Continue": Guinness Nigeria Speaks on Alleged Exit From Nigerian Market

  • Guinness Nigeria has confirmed its commitment to the Nigerian market, ending speculations of its planned exit from the country
  • Tolaram Group's acquisition of Diageo's 58% stake in the beverage company has led to the swelling of misinformation in the last few days
  • Guinness confirmed continued operations in the country and affirmed that it will remain on Nigeria's stock exchange

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

Guinness Nigeria Plc has addressed recent rumours suggesting it intends to exit the Nigerian market.

In a newly released statement, the beverage company, established in Nigeria since April 1950, categorically dismissed these reports as false and malicious misinformation.

Guinness Nigeria refutes exit speculations
Guinness Nigeria also affirmed that it will continue to be listed on the Nigerian Stock Exchange. Photo credit - Guinness Nigeria.
Source: UGC

Guinness Nigeria refutes exit speculations

Speculation about Guinness Nigeria's departure emerged following Diageo's sale of its 58.02% majority stake to Tolaram Group, a Singaporean conglomerate.

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Guinness Nigeria explained that the acquisition of the majority stake enables it to benefit from Tolaram Group's significant expertise in manufacturing and distribution.

The company emphasized that it has no plans to leave the vibrant Nigerian market, reaffirming its commitment to its Nigerian operations and its readiness for a new era of growth and innovation.

The statement partly reads:

"The recent announcement of the partnership between Diageo and Tolaram Group further reinforces unequivocally that Guinness Nigeria remains committed to Nigeria and has no intention of exiting the dynamic Nigerian market.
"Our business will continue strongly, and no jobs or factories will be adversely affected as a result of this new partnership."

The company highlighted its steadfast dedication to Nigeria, demonstrated through significant investments in infrastructure, job creation, backward integration, and community development as well as social responsibility programs.

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Guinness Nigeria also affirmed that it will continue to be listed on the Nigerian Stock Exchange, preserving its prominent position in the Nigerian beverage industry.

This would not be the first time the company has had to shut down rumours of its planned exit from Nigeria over poor revenue and reported forex losses.

Through a long-term license and royalty agreement, Guinness Nigeria will maintain the production and sale of all its iconic brands, such as Guinness FES and Smooth, Smirnoff Ice, Orijin Bitters, and Malta Guinness, along with Diageo MSS brands like Smirnoff X1, Gordon's Moringa, and Captain Morgan Gold Rum.

This ensures that consumers across the nation can continue to enjoy their favourite beverages.

Guinness is deep-rooted in Nigeria - expert

Commenting on the matter, Anthony Obi, a Lagos-based stockbroker, told Legit.ng that Guinness Nigeria is unlikely to exit the country due to its deep-rooted market presence and significant investment.

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He said:

"As one of the leading breweries in Nigeria, Guinness enjoys a loyal customer base and strong brand recognition. The company also benefits from the country's favourable regulatory environment for alcoholic beverages.
"Yes it may have performed beyond expectation in the last few quarters, so have many other companies in Nigeria due to the current economic realities. But that is not enough for it to pack up and leave.
"Exiting Nigeria would mean forfeiting these strategic advantages and substantial market share in one of Africa's largest economies."

Guinness announces price increases for its brands

In related news, Legit.ng reported that Guinness Nigeria Plc has announced new prices across significant product lines.

Olusanya Adesanya, the acting commercial director for Guinness Nigeria, faulted the prevailing economic realities for the implemented increase.

According to him, this has significantly impacted the costs of production materials and the cost of doing business.

Source: Legit.ng

Victor Enengedi avatar

Victor Enengedi (Business HOD) Victor Enengedi is a trained journalist with over a decade of experience in both print and online media platforms. He holds a degree in History and Diplomatic Studies from Olabisi Onabanjo University, Ogun State. An AFP-certified journalist, he functions as the Head of the Business Desk at Legit. He has also worked as Head of Editorial Operations at Nairametrics. He can be reached via victor.enengedi@corp.legit.ng and +2348063274521.