The goal for Nigerian Breweries is to obtain an 80% stake in Distell Wines & Spirits Nigeria Limited by the first half of the year’s end.
During the pre-AGM media briefing in Lagos, the Managing Director/CEO of NB Plc, Hans Essaadi, shared this exciting development.
As part of a strategic recovery plan, the brewer will be closing down two out of its nine breweries in Nigeria, emphasizing operational efficiency.
Navigating foreign exchange losses has been a challenge for NB in the Nigerian market due to ongoing dollar scarcity and economic instabilities.
In response to these challenges, the company stated, “The tough business landscape characterized by double-digit inflation rates, naira devaluation, FX challenges and diminished consumer spend has taken its toll on many businesses, including ours.
“This is why we have taken the decision to further consolidate our business operations for efficient cost management and optimal use of our resources for future sustainable growth.”
The finalization of the transaction is being concluded at the South African end, with an anticipated completion in the second quarter of this year.
Essaadi emphasized, “This strategic acquisition aligns with our beyond-beer agenda, enhancing our market share in various beverage categories and fortifying our long-term profitability with new offerings in wines, spirits, and flavored beverages.”
Back in June 2023, NB unveiled its plans to acquire an 80% stake in Distell Wines and Spirits Nigeria Limited to tap into growth prospects in the wines and spirits sector.
Upon receiving an offer from Heineken Beverages Limited, the majority interest acquisition in Distell Wines & Spirits Nigeria Limited was set in motion.
Furthermore, Essaadi highlighted Heineken NV’s commitment to participating in the rights issue.
As Heineken NV holds a 57% stake in NB, ensuring stability and predictability in the market is paramount for future success.
Addressing the current market challenges, Essaadi stated, “The fundamentals in this market remain poor, but we believe in the long term. This is the largest economy in Africa with growing potential. Weathering the storm now is essential to secure our future success.”
Essaadi highlighted the importance of adapting to evolving consumer needs and market trends for future-proofing NB’s business strategy.
Expressing optimism for the future, Essaadi concluded, “We have faced storms and losses, driven by FX, but we are resilient. Embracing this crisis as an opportunity to evolve and grow is our approach.”