•Says firm took N19bn haircut in 2023 from naira devaluation
By Amechi Ogbonna
About 74 years after opening shop in Africa’s largest economy, Guinness Nigeria Plc at the weekend declared it has no intention to exit the country despite the challenges that have tended to hobble its manufacturing sector.
Rather than abandoning Nigeria, one of its most lucrative markets in Africa, the company says it has continued to invested N7.5billion in new facilities to expand its operations.
Managing Director/Chief Executive Officer of the company, John Musunga, who gave the assurances during a press briefing at its corporate head quarters in Ikeja, Lagos said the brewery board and management were pleased with its customer’ patronage as well as what the Federal Government was doing to stabilise the nation’s economy.
He said that despite suffering a N19billion trading loss in the course of the year following a74 percent devaluation of the Naira by the Bola Ahmed Tinubu led- Federal Government in its desire to correct some of the perversive distortions in the economy, Guinness Nigeria in collaboration with its parent company Diageo has continued to invest in expansion and new products development to meet the growing needs of its clients.
Musunga said it was against this backdrop that Guinness Nigeria PLC that started with stout marketing and brewing at its inception has now expanded its product range to include beer, spirits and lately ready to drink beverages brands.
“We feel confident that the measures so far taken by the Federal Government will work well in the long run. In the short run, it may be painful. In about 18 months or there about, it may be tough for most businesses. But we expect government to stabilise exchange rate and other macroeconomic variables” He said .
Giving reasons why, Guinness Nigeria is exiting the marketing and sale of imported spirits to focus on locally manufactured brands, Musunga said it was a deliberate decision by Diageo to make Nigeria the”spirit hub” of West Africa.
According to him, under an emerging operating structure that would be effective from the first quarter of next year now being worked out, the Nigerian firm would only focus on its areas of core competences locally while imported spirits would be sold by a new arm of Diageo, .
Over the years, the sale of imported spirit had accounted for about 6 percent of Guinness Nigeria Plc’s operations but represents between 12 -15 percent of its foreign currency exposure.
Diageo holds about 58 per cent of the Nigerian company and been investing in recycling and water improvement activities as part of efforts to reduce its carbon footprints in both the Lagos and Benin breweries.