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Home Business & Economy Diageo postpones plan to separate from Guinness, to
establish Nigerian entity in...
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DIAGEO POSTPONES PLAN TO SEPARATE FROM GUINNESS, TO ESTABLISH NIGERIAN ENTITY IN
2025

By
Adebisi Aikulola
-
March 26, 2024
0
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DIAGEO

Guinness Nigeria says the plan to stop importing Diageo Plc’s products has been
extended to 2025.

The company said importation and sale of Johnnie Walker, Baileys, and other
Diageo products will continue beyond April 2024.

On October 5, 2023, Guinness announced plans to stop the sales and importation
of the products in April due to Diageo’s plan to establish a new, wholly owned
spirits-focused business in the Nigerian and African markets.

However, in a statement released on Tuesday to the Nigerian Exchange Limited
(NGX), Guinness said the transition is taking longer than expected, hence the
change in date until 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,” the company said.

“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.”

The company said Nigeria will serve as a key hub of Diageo’s new business,
adding that there are no changes to Diageo’s shareholding in Guinness as a
result of this separation.

 * TAGS
 * Baileys
 * Diageo Plc
 * Guinness Nigeria
 * Johnnie Walker

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