In a significant move within the Nigerian beverage industry, Nigerian Breweries Plc has announced the completion of its acquisition of Distell Nigeria. This strategic acquisition is expected to propel Nigerian Breweries onto a robust growth path in both the mid and long-term, according to John Paul Emechebe, Head of On Premise at Red Bull Leadership & Strategy.
Emechebe expressed optimism about the acquisition, highlighting the potential for growth and expansion. “Distell has a good portfolio and range, however, it seems in the recent past its only Amarula and 4th Street that have sustained growth,” he remarked. He questioned the performance of other notable brands under Distell, including Savanna, Hunter, and the premium cognac, Bisquit.
Emechebe believes that with Nigerian Breweries’ extensive distribution network and strong market penetration in both On Trade and Off Trade sectors, these brands have the opportunity to regain momentum and thrive once again.
The acquisition is also seen as a strategic move that could shift the competitive landscape. Emechebe hinted at the potential responses from other key players in the industry, specifically addressing International Breweries Plc. “What’s next for International Breweries? I believe that this strategic move to expand your portfolio to wine and spirit is in the pipeline. The basis of competition has now changed with this move by Nigerian Breweries.”
As the industry anticipates the outcomes of this acquisition, Emechebe, along with others, will be closely monitoring the developments to see how this strategic shift will impact the market dynamics and competition within Nigeria’s beverage sector.
