In a significant move that could reshape the Nigerian beverage market, Nigerian Breweries Plc has announced its deliberation on acquiring an 80% shareholding in Distell Wines & Spirits Nigeria Limited. The revelation was made public through a notice submitted to the Nigerian Exchange Limited.
Uaboi G. Agbebaku, the Company Secretary, released a statement confirming that during a specially convened meeting of the Board of Directors on May 30th, 2023, an offer was presented to Nigerian Breweries from Heineken Beverages (Holdings) Limited, based in South Africa. The offer proposed Nigerian Breweries’ acquisition of Heineken Beverages’ majority interests in Distell Wines & Spirits Nigeria Limited, held through Distell International Limited.
With this offer on the table, Nigerian Breweries’ Board has resolved to thoroughly assess the proposition with the guidance of external legal and financial advisors. A decision will be made in the upcoming weeks, and the outcome will be duly communicated.
Notably, Distell Wines & Spirits Nigeria Limited is a subsidiary of Distell International Limited, which is wholly owned by Heineken Beverages. Established in 2018, Distell Nigeria operates in two primary sectors: local production of wines (still and sparkling) and ciders, as well as the importation of wines, spirits, and flavored alcoholic beverages from the Distell Group in South Africa. The company’s headquarters are located in Lagos, Nigeria, and its brand portfolio includes popular names such as Amarula, JC Leroux, Nederburg, Drostdy Haf, 4th Street, Bain’s, Knights, Chamdor, Hunters, and Savanna.
This potential acquisition comes on the heels of Heineken’s successful purchase of South Africa’s Distell Group Holdings for a staggering $2.5 billion last year. Simultaneously, the Dutch brewery giant also acquired Namibia Brewery, leading to the formation of a southern African beverage conglomerate valued at 4 billion euros ($4.6 billion), as reported by Reuters. The acquisition of Distell, marks a significant expansion by Heinekens into the wine and spirits sector.
As stakeholders eagerly await the final decision, industry observers predict that this development could have far-reaching implications for both Nigerian Breweries and the Nigerian alcoholic beverage landscape as a whole.