By Aduragbemi Omiyale
The implementation of a new distribution model for imported Diageo International Premium Spirit (IPS) brands like Johnnie Walker, Singleton, and Baileys will no longer be the 2024 fiscal year but the next, Guinness Nigeria Plc has disclosed.
The brewer had earlier said it was changing the distribution model of the importation of spirits produced by Diageo from this year due to some reasons.
Guinness Nigeria intends to separate the two businesses and had fixed April 2024 for the commencement of this.
However, in a statement on Tuesday, it said this has become unachievable because “the transition to the new arrangements” was taking longer than anticipated.
In view of this, it will “continue to import and distribute Diageo IPS products” until the transition process is completed, probably by 2025.
“Guinness Nigeria Plc and Diageo have, since the said announcement, taken preliminary steps towards the implementation of the business separation, which 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.
“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.
“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.
“We reiterate that the separation is in line with Guinness Nigeria’s long-term growth strategy, and Diageo Plc’s decision to establish a new, wholly owned spirits-focused business to manage the importation and distribution of its international premium spirits portfolio in West and Central Africa.
“Nigeria will serve as a key hub of that business,” parts of the statement signed by the company secretary, Mrs Abidemi Ademola, said.
Meanwhile, Guinness Nigeria said it remains a strong Nigerian company committed to ensuring that its strategic and operational activities deliver sustainable value to its stakeholders.