Nigerian Breweries Completes Acquisition of Full Ownership in Distell Wines and Spirits

Nigerian Breweries has completed a full acquisition of Distell Wines and Spirits Nigeria Limited, securing a 20% stake after previously acquiring 80%. This strategic move aims to diversify its product offerings beyond beer and enhance operational efficiencies. The company’s relocation of manufacturing operations to its own facility is expected to bolster production capacity.

Nigerian Breweries, the local affiliate of Heineken N.V., has completed the acquisition of Distell Wines and Spirits Nigeria Limited by acquiring an additional 20 percent stake, achieving full ownership of the company. This follows the previous purchase of an 80 percent stake last June, which was authorized by South Africa’s Reserve Bank, thus facilitating Nigerian Breweries’ acquisition of shares from Heineken Beverages Holdings in Distell Nigeria.

This acquisition also permitted the company to take control of Distell International Limited’s import business in Nigeria. The move followed the execution of a sale and purchase agreement with minority shareholders, Ekulo International Limited and Next International Nigeria Limited, each of whom held a 10 percent stake in Distell Wines and Spirits.

In a statement, Nigerian Breweries indicated that this full acquisition would simplify operations and enhance decision-making processes as the company aims to diversify beyond beer, anticipating that the inclusion of wines in its product range would increase value in the local beverage sector. To support this initiative, Nigerian Breweries has moved its manufacturing operations to its own facility, enhancing the production capacity of Distell’s brands.

CEO Hans Essaadi has previously stated that the acquisition is a strategic effort to create a diverse portfolio of rapidly expanding wine and spirits brands to capitalize on growth opportunities within this market segment. Noteworthy offerings from Distell Wines and Spirits include Chamdor, Hunters Dry, 4th Street, and Savanna, while Nigerian Breweries also imports brands such as Drosty Hoff, Nederburg wines, Amarula Cream Liqueur, and Bain’s Whisky.

Nigerian Breweries reported a record net loss of N145 billion last year, significantly impacted by a sharp depreciation of the naira. As of the end of 2024, the total asset value was reported at N1.14 trillion compared to N1.13 trillion from the previous year.

In summary, Nigerian Breweries has successfully acquired full ownership of Distell Wines and Spirits Nigeria Limited, enabling a strategic expansion into the wines and spirits market. This move aims to streamline operations and enhance product diversification, positioning the company for growth in a competitive industry. As the company navigates financial challenges, such acquisitions may be pivotal in unlocking further value within the local beverage sector.

Original Source: www.premiumtimesng.com