In a shock move, Guinness Nigeria, a subsidiary of global brewery brand Diageo, has announced plans to exit the Nigerian market and sell its controlling stake to Singaporean conglomerate Tolaram Group. The company’s decision comes after a tumultuous period under the administration of President Bola Tinubu, which has seen the Nigerian economy struggle to recover.
According to reports, Guinness Nigeria suffered a staggering loss of N61.9 billion between July 2023 and March 2024, a significant decline from the N5.9 billion profit recorded in the same period last year. The loss is attributed to the country’s economic woes, which have been exacerbated by the recent floatation of the naira.
The company’s decision to exit the market is seen as a major blow to the Nigerian economy, which has already lost several multinational companies in recent years. GlaxoSmithKline and Microsoft are among the notable companies that have pulled out of the country, citing the harsh economic climate.
Under the terms of the agreement, Tolaram Group will acquire Diageo’s 58.02% stake in Guinness Nigeria and assume responsibility for the production and distribution of Guinness brand products. The deal is expected to be completed by 2025, subject to regulatory approvals.
Diageo has reassured that its ownership of the Guinness global brand will not be affected by the sale. The company will continue to license the Guinness brand to Guinness Nigeria for long-term use.
The departure of Guinness Nigeria marks the end of an era for the company, which has been operating in Nigeria since 1950. The company’s products, including Smirnoff Ice, Smirnoff Vodka, Orijin Bitters, and Malta Guinness, have been popular among Nigerians for generations.
The sale of Guinness Nigeria’s controlling stake is a significant development in the country’s economic landscape, and its implications are likely to be felt for some time.
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