Guinness Nigeria Plc has announced the acquisition of the distribution rights for Diageo International Premium Spirits (IPS) brands in the country.

According to a statement by the company, the transaction worth, N2.35 billion, would be concluded by December.

It stated that the new distribution agreement for the IPS brands would commence on January 1, subject to all regulatory approvals.

The company added that it would take over various assets including the current inventory of Diageo Brands Nigeria Ltd that presently distributes and markets the IPS brands in Nigeria.

The Managing Director of the company, Peter Ndegwa explained that the transaction would facilitate the achievement of its ambition to create the best performing, most trusted and respected consumer products company.

Ndegwa said that the company would leverage the strength of its unparalleled portfolio of beer, adult premium non-alcoholic drinks (APNADs), ready to drink (RTDs) as well as spirits.

“The integration of the Diageo IPS brands with the Guinness Nigeria brand portfolio best fits our strategy of filling the gap in our total beverage alcohol portfolio, and allows us to compete across segments within the market”, he said.

The company recently unveiled plans to boost profitability and enhance growth, amid harsh operating environment, saying it has expended N52 billion in in-house upgrading, quality control measures as well as product automation.

Edegwa, while speaking during the pre-yearly general meeting in Lagos recently, explained that the company has taken various strategic approaches to ensure that it remains innovative and competitive, amid volatile operating environment.

According to him, the company is currently focusing on strengthening and accelerating the growth of its premium core brands, as well as drive out cost by re-investing in the growth of the business going forward to improve efficiency.

“We want to be the best most performing and most trusted in Nigeria. We believe that our strength is in our portfolio of heritage and our ability to innovate. We are currently focusing to grow our premium core brands. We expect that the operating environment will continue to be volatile because the currency will still be under pressure and government revenue. Inflation is also likely to continue.

“We are focusing on cost and driving growth from innovation will be part of our business, being aggressive and focusing on our premium core business, investing in our brand and road consumer. We believe in our strategy and continue to put a lot of investment into talent to reinforce and improve capability especially in sales side.”