Nigerian Breweries Achieves Full Acquisition of Distell Wines and Spirits
Nigerian Breweries has completed its full acquisition of Distell Wines and Spirits Nigeria Limited by purchasing an additional 20 percent stake, following an earlier acquisition of 80 percent. This strategic move aims to streamline operations and enhance the company’s beverage portfolio, including notable wine and spirit brands. The company anticipates greater production capacity and economic efficiencies from this acquisition.
Nigerian Breweries has secured full ownership of Distell Wines and Spirits Nigeria Limited by acquiring an additional 20 percent stake. This follows its previous purchase of 80 percent last June, which was made possible after obtaining approval from South Africa’s Reserve Bank. The acquisition cleared the way for Nigerian Breweries to fully integrate Distell’s beverage operations in Nigeria, enhancing its market presence.
The company highlighted that this full acquisition is a strategic move to reduce operational complexities and expedite decision-making as it diversifies its portfolio beyond beer. By including wines in its product offerings, Nigerian Breweries aims to unlock additional value within the local beverage industry.
Furthermore, the relocation of Distell’s manufacturing operations to a newly owned plant is expected to increase production capacity. This transition will allow Distell to benefit from economies of scale, thereby improving efficiency.
CEO Hans Essaadi emphasized that this acquisition is part of a broader strategy to provide a diverse portfolio of fast-growing wine and spirit brands, aiming to capture significant growth in this sector. Among the brands produced are Chamdor, Hunters Dry, 4th Street, and Savanna, alongside imported names like Drosty Hoff and Nederburg wines.
Despite facing challenges, such as a record net loss of N145 billion last year due to naira devaluation, Nigerian Breweries reported total assets amounting to N1.14 trillion by the end of 2024, indicating a stable financial position amid difficulties in the market.
In summary, Nigerian Breweries has demonstrated a proactive approach to strengthening its market position by acquiring full ownership of Distell Wines and Spirits Nigeria Limited. This move aligns with its strategy to diversify its portfolio and streamline operations. The company’s plans for increased production capacity and the introduction of a wider range of beverages reflect its commitment to capturing opportunities in the evolving beverage market.
Original Source: www.premiumtimesng.com
