Nigerian Breweries To Venture Into Production Of Wines, Spirits With Planned Acquisition Of Distell Ltd

Nigerian Breweries Plc has asked its shareholders to approve its plan to acquire 80 per cent of Distell Wines and Spirits Ltd.

The company made the disclosure in a filing seen by THE WHISTLER on Friday.

Distell Nigeria is a subsidiary of Distell International Limited which is 100 per cent owned by Heineken Beverages (Holdings).

The NB announced on 31st May 2023 that it was considering acquiring Distell Wines which is famous for its brands like, Amarula, JC Leroux, Nederburg, 4th Street, Bain’s, Knights, Drostdy Haf, Chamdor, Hunters and Savanna.

However, its board needed a detailed review of the offer from Heineken and met on the 16th of November 2023, where arrangements were made.

NB said its board resolved to “Recommend to shareholders in a general meeting for their consideration and approval, the acquisition of 80 per cent economic interest, voting, and other rights held by Heineken Beverages (Holdings) Limited in Distell Wines & Spirits Nigeria Limited, which interests and rights are held through Distell International Holdings Limited and 100 per cent of the import business of Heineken Beverages (Holdings) Limited in Nigeria (including the license to market, distribute and sell the imported products, as well as produce any of the imported brands locally).”

The Brewery company said the acquisition aligns with the its strategic objective of expanding its current product offerings beyond beer to include, wines, spirits, and flavored alcoholic beverages.

Through the acquisition, NB hopes to see more growth opportunities and long-term profitability.

The deal is being considered when the company is operating at a loss.

Checks by THE WHISTLER showed that in the third quarter of 2023, NB recorded N57.19bn as against the N14.75bn profit it recorded last year September.