Despite the daunting economic landscape in Nigeria, Nigerian Breweries Plc, a subsidiary of Heineken N.V., is embarking on a strategic diversification journey with the acquisition of an 80% stake in Distell Wines & Spirits Nigeria Limited. This bold move, set to be completed by the end of the first half of the year, aims to disrupt the alcohol market while expanding the company’s presence in wines, spirits, and flavoured beverages.
Hans Essaadi, Managing Director/CEO of Nigerian Breweries, highlighted the significance of this diversification, stating, “This strategic move will provide us with a complementary multi-category portfolio, strengthen our market share, and future-fit our business for long-term profitability.”
However, Nigerian Breweries has faced its share of economic challenges, reporting a net loss of N106 billion in the 2023 financial year due to currency devaluation and higher borrowing costs. To address this, the company has proposed a rights issue to raise up to N600 billion in fresh capital, with support from majority shareholder Heineken N.V.
The company has also undertaken a strategic reorganization plan, suspending operations at two of its nine breweries in Nigeria – Awo-Omamma in Imo State and Kakuri in Kaduna State – to enhance operational efficiency. Despite this, Nigerian Breweries remains committed to its communities, pledging to build an oil palm mill in Awo-Omamma and support Kakuri with another project.
Uaboi G. Agbebaku, Company Secretary at Nigerian Breweries, emphasized the company’s commitment to societal impact, stating, “Suspension of activities in those two breweries will not stop us from giving back to society.”
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