Guinness Nigeria : Extends Timeline for Change in Distribution Model for Imported Diageo International Premium Spirit (IPS) Brands

Guinness Nigeria PLC Extends Timeline for Change in Distribution Model for Imported Diageo International Premium Spirit (IPS) Brands

Lagos, Nigeria - 26 March, 2024

Guinness Nigeria PLC ("Guinness Nigeria") today announces an update to its initial notification dated 5th October, 2023, regarding the change in distribution model for imported Diageo International Premium Spirit (IPS) brands.

Following preliminary steps taken by Guinness Nigeria PLC and Diageo since the initial announcement, it has become apparent that the transition to the new distribution model is taking longer than anticipated. As a result, the completion of the implementation of the separation of the IPS brands from Guinness Nigeria's business, initially scheduled for April 2024, will now become effective during the course of Guinness Nigeria Plc's Financial Year 2025.

During this transition period, Guinness Nigeria PLC will continue to import and distribute Diageo international premium spirits products, including Johnnie Walker, Singleton, and Baileys, among others, under its existing 2016 Sale & Distribution Agreement with Diageo plc.

The separation of the IPS brands is part of Guinness Nigeria's long-term growth strategy and aligns with 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, with Nigeria as one of the hubs.

There are no changes to Diageo plc's shareholding in Guinness Nigeria, and Diageo remains a key shareholder of Guinness Nigeria.

Guinness Nigeria PLC remains committed to manufacturing and distributing its full portfolio of non-alcoholic drinks, beer, ready-to-drink (RTDs), and locally produced spirits, including Orijin, Captain Morgan Gold, Gordon's Moringa, and Smirnoff X1 Choco.

Adebayo Alli, Managing Director/CEO, Guinness Nigeria Plc., said "This strategic transition will empower Guinness Nigeria to sharpen its focus on our core operations, which have consistently demonstrated resilience and growth despite external challenges. Our investments in expanding capacity at our breweries in Ogba, Lagos State, and Benin, Edo State, have positioned us to meet the increasing demand for our renowned beer and locally beloved spirits brands. While the initial timeline for the separation of our international premium spirit brands from Guinness Nigeria's business has been extended, rest assured that Guinness Nigeria remains steadfast in its commitment to delivering sustainable value to our stakeholders. Our focus remains on maximizing our manufacturing, marketing, and distribution capabilities across our diverse portfolio of alcoholic and non-alcoholic beverages. We appreciate the continued support of our shareholders and stakeholders as we work towards achieving our strategic objectives."

About Guinness Nigeria

Guinness Nigeria, part of the world's largest drinks company, Diageo Plc., is the only Total Beverage Alcohol company in Nigeria with a wide portfolio of brands catering to non-alcohol and alcohol drinkers, with non-alcoholic beverages, Spirits, Lager & Beers. Some of its well-known and well-respected brands include: Guinness Foreign Extra Stout, Guinness Smooth, Malta Guinness, Orijin Bitters, Dubic Malt, Mr.Dowells, Gordons Pink Berry, Gordons Orange Sunset, Smirnoff Ice, Smirnoff Vodka, Smirnoff Pine-apple Punch, amongst others.

With a very clear ambition - "To be the best performing, most trusted and respected consumer products company in Nigeria", Guinness Nigeria delivers on its sustainability and responsibility commitments which are focused on three areas; Promoting Positive Drinking, Championing Inclusion and Diversity and Pioneering Grain to Glass sustainability. The company continues to be a champion for responsible drinking and community development.

Guinness Nigeria, home of the first Guinness brewery outside of the British Isles, was established in 1950, making it one of the oldest serving manufacturing companies in Nigeria. The first bottle of Guinness Foreign Extra Stout in Nigeria was brewed in our Ogba Brewery in 1962, two years after Nigeria's independence. Three years later, in 1965, Guinness Nigeria was listed on the Nigerian Stock Exchange. In 1974, we built our second brewery in Benin, and expanded it in 1978 to accommodate a second stout brewery. In 1982, we built our fourth Guinness brewery in Ogba, Lagos and expanded both the Benin and Ogba breweries to further increase capacity and meet the growing demand for Guinness Nigeria products in 2011.