Guinness Nigeria’s mainstream spirits won significant medals at the recently concluded San Francisco World Spirits Competition (SFWSC).
Gordon’s Moringa Citrus Blend led the way with a gold medal in the Gin category. According to the SFSWC screening panel, a Gold Medal is awarded to products deemed ‘exceptional spirits near the pinnacle of achievement that set the standard for their categories’.
Smirnoff X1 Vodka also performed greatly, clinching silver medals for its Intense Chocolate and Extra smooth variants, while category leaders Orijin Bitters and McDowell’s No.1 Whisky won bronze medals in their respective categories.
Founded in 2000, the San Francisco World Spirits Competition was established as a way to recognize exceptional products in the spirits industry. The 2018 Competition was the biggest in its history, featuring more than 2,200
entries. An SFWSC medal has become a recognized affirmation of high quality and one of the most reliable and universal indications of spirits excellence.
The mainstream spirit brands from Guinness Nigeria Plc. staved off stiff competition from over 2,200
international brands at the SFWSC, which is a highly regarded competition established to recognize exceptional products in the spirits category.
‘We are excited to have been recognized as trailblazers in our craft which is a reflection of our commitment to providing quality brands for our consumers to enjoy and celebrate with, every day and everywhere,’ said Marketing Manager for Guinness Nigeria’s Spirits Portfolio, Aigbeme Okonkwo.
The giant brewer also disclosed that each of the winning spirits is proudly made in Nigeria and further underscores the consistent Global Quality Management Standards deployed by Guinness across its production plants worldwide.
Guinness Nigeria, a subsidiary of Diageo Plc of the United Kingdom was incorporated in 1962 with the construction of a brewery in Ikeja, the heart of Lagos. The brewery was the first Guinness operation outside Ireland and Great Britain. Guinness Nigeria has grown tremendously over the years and cemented its place in the hearts of Nigerian stout drinkers as the favourite bold premium stout.
Diageo-owned Guinness Nigeria Plc has announced that Baker Magunda, currently the Managing Director of Meta Abo Brewery in Ethiopia, as their new CEO.
Magunda will take over from Peter Ndegwa, who will be stepping down at the end of the 2018 Financial Year after three years in office. Ndegwa will be taking up a new role as the Managing Director, Continental Europe and Russia, a member of the Diageo Group, the company also announced.
“Ndegwa has been at Guinness Nigeria for nearly three years and has overseen the recent transformation at the company, including the successful rights issue and implementation of the productivity programme,” according to a statement released by the company.
“Recent third quarter financial performance has shown the improvement that these projects are delivering.
“Baker Magunda will join Guinness Nigeria from Diageo-owned Meta Abo Breweries in Ethiopia. Under Magunda’s tenure, Meta Abo has seen the launch of the Guinness brand in the country and a strong innovation pipeline of brands brought to the market. He has nearly 20 years’ experience in the consumer goods and alcohol industry. He has worked across in Uganda and Kenya, as well as Ethiopia and the Sudan.”
Speaking on the development, the Chairman, Guinness Nigeria Plc, Mr. Babatunde Savage, said, “I will like to thank Peter (Ndegwa) for his transformational work over the past few years; he has led the business through challenging times and taken us forward. It is great to see him move on within Diageo. I will also like to use this opportunity to welcome Baker to the role. I look forward to working with him.”
Guinness Nigeria Plc has launched the Smashed initiative for the first time in Nigeria, in partnership with Rue 14 Studios.
Smashed is an initiative of Diageo Plc, the parent company of Guinness Nigeria and is targeted at tackling the issue of underage drinking amongst youth using drama and interactive educational tools.
The initiative is designed to enable pupils to understand the facts, causes, and consequences surrounding alcohol abuse and underage drinking. This pilot programme will involve at least 30 public and private schools in Lagos State.
Mr Peter Ndegwa, Managing Director/Chief Executive Officer, Guinness Nigeria Plc, stated that Smashed is an award-winning theatre and education programme that informs young people about the dangers of alcohol.
“This initiative was launched in the UK more than a decade ago. It has now been delivered in 10 countries around the world including Mozambique. The result of the programme in other countries has been incredibly encouraging and has received very good reviews from both students and teachers stating that they understand more the consequences of underage drinking.
This will involve the use of emotive theatre, interactive workshops, and interactive teaching resources all backed up with robust evaluation, with fantastic results.
“The program does not include any reference to Diageo or any Diageo brand positioning materials or adverts in the schools visited,” Mrs Graham-Douglas added.
Guinness Nigeria is already establishing partnerships with education authorities, theatre companies and practitioners in the country to adapt Smashed to that audience and culture.
The Smashed Project is dedicated to breaking the culture of underage drinking and reducing alcohol-related harm amongst young people around the world.
Guinness Nigeria yesterday posted the company’s Q2-17/18 results showing a net profit of NGN2.09 billion (vs. NGN2.44 billion loss last year).
According to the report, the net profit was possible due to continued revenue growth, better margin, and lower opex and finance charges. The net profit was equally higher compared to Q1-17/18’s NGN41.4 million but below our NGN2.70 billion estimate and the consensus expectation of NGN2.8 billion.
The giant brewer’s revenue grew by 11% y/y and 36% q/q, with sales sustained by festive demand, strong marketing effort, and relatively higher prices.
Diageo, the parent company of Guinness Nigeria Plc, in its report said that over the last quarter, the group enjoyed positive price in Nigeria. The report also states that the company’s mainstream spirits and value beer (Dubic precisely) also recorded faster growth during the period. Sales volume was reported to have grown by about 17% y/y over H1-17/18. Value beer (23% y/y), Guinness (14% y/y), Malta Guinness (6% y/y), and mainstream spirits (22% y/y) recorded net sales growth in the first half.
While gross margin remained higher relative to the last financial year (+601 bps y/y), there was a 118 bps decline compared to the first quarter. Gross margin was lower by c.650 bps and has weakened consistently since reaching record 55% in Q3-16/17, reflecting, growing contribution of value beer and inflation of key raw materials (Sorghum to be precise).
Also worth highlighting is the opex which was lower by 12% y/y with admin and distribution expenses falling to 25% y/y and 24% y/y respectively. Marketing expenses, following strategic campaigns on Guinness, grew to 20% y/y. EBITDA margin of 15.4% was reported, significantly higher y/y, but lower by 96 bps q/q.
There was 65% y/y decrease in finance charges, comprising NGN583 million loss (NGN857 million in Q2-16/17) on foreign exchange transactions and N374 million (vs. NGN1.9 billion in Q2-16/17) related to interest expense on loans and borrowings and overdraft facilities. Compared to Q1, FX loss and interest expenses were lower by 74% and 77% respectively.
The company’s gross debt now stands at NGN12.5 billion post-Rights Issue, and the consequently reduced interest burden will remain supportive of earnings for the rest of 2018.
Ten years ago, Nigeria overtook Ireland as the second biggest Guinness market in the world, coming behind the United Kingdom.
No much surprise there considering Lagos as the first place outside the UK that a Guinness brewery was established in 1962 – two years after Nigeria’s independence.
So how did the dark, rich, tangy porter beer become such a big deal in Africa’s most populous nation?
How Guinness stout journeyed
First brewed by Arthur Guinness in Dublin in 1759, the stout has moved from a local favourite in Ireland to global popularity.
However, it was Arthur’s son, Arthur Guinness II, that kicked off the growth of the beer’s empire when he took the reins in 1803. Following the routes already created by the British Empire, the beer, travelled across the world. It was especially brewed to survive long sea journeys.
In 1817, eight barrels of porter journeyed across the Atlantic to South Carolina. By 1827, Guinness was being drunk in Africa, and by 1858 it had made it all the way to New Zealand
Today, Guinness is available in more than 100 countries worldwide and is brewed in almost 50.
Why Nigerians love Guinness Stout
Neighbours Cameroon comes a place after Nigeria as the fourth-biggest market for Guinness but here arefive reasons why Nigerians have found love with the beer:
Guiness boasts of a unique mix of roasted, malted barley, hops, yeast and water that makes up for its rich taste. Many believe that Nigerians love sugary things, and beer is not the sweetest of sugary beverages. However, the smacking taste of a cold bottle of Guinness Stout is something that Nigerians won’t exchange for anything else.
Significantly, the Guinness Foreign Extra Srout in Nigeria is different in taste to others. Since the ban on the import of foreign barley in 1990, the local brewery has turned to local farmers for sorghum and maize in the production of the beer.
What it represents
Guinness represents a show of strength, which is something African (Nigerian) men love. The advertising campaign which featured fictional character Michael Power played a great role in getting Nigerian men to love the beer.
The zenith of that campaign was the 2004 film, Critical Assignment, which featured ‘Michael Power’ along with top Nollywood actors is another motivating factor why the beer is loved in the country.
The campaign ads
When it comes to campaign ads targeted at expanding their market in Nigeria, and Africa as a whole, Guinness has always had the upper hand.
The Michael Power exploits campaign went long miles, and then came the Guinness Greatness campaign. Recall that favourite intro line “My friend Udeme is a great man?” The name is ‘Udeme’ is a Nigerian name from the Ibibio name which means ‘my share’ or ‘my portion.’ That alone gingered Nigerians to go for larger shares of Guinness stout.
Then came the ‘Made of Black’ campaign which does not just emphasize the dark richness of Guinness, but also the uniqueness of the melanin-filled people of the continent. How does this work? It is easy to love something that looks like you. Not so?
Just because Nigerians love beer
Beer makes up just 16% of alcohol consumption in Nigeria, which means drinkers in the country consume approximately 12.28 litres a year. That statistics puts Nigeria at the top of the list of highest consuming beer countries in Africa. Quite significantly, Guinness Foreign Extra Stout is in the top three of the most consumed beers in Nigeria.
Is it medicinal?
Something about the slightly bitter taste of Guinness has convinced most Nigerians that it has medicinal benefits. It is not out of place to see a Nigerian, especially ladies, having a bottle of Guinness just to combat stomach aches. When a people believe that something is beneficial to their health, it is easy for them to love it.
Guinness History – The story of one of the world’s most popular beers
Arthur Guinness inherited £100 from his uncle in 1752. He invested it in a beer brewing facility and began manufacturing Irish stout. Guinness has since become one of the most successful beer brands worldwide. Guinness is a popular Irish dry stout that originated in the brewery of Arthur Guinness at St. James’s Gate, Dublin. It is brewed in almost 60 countries and is available in over 100. 850 million litres are sold annually. A feature of the product is the burnt flavour that is derived from roasted unmalted barley, although this is a relatively modern development, not becoming part of the grist until the mid-20th century. For many years a portion of aged brew was blended with freshly brewed beer to give a sharp lactic flavour. Although the Guinness palate still features a characteristic “tang”, the company has refused to confirm whether this type of blending still occurs. The draught beer’s thick, creamy head comes from mixing the beer with nitrogen when poured.
It is popular with Irish people both in Ireland and abroad, and, in spite of a decline in consumption since 2001, is still the best-selling alcoholic drink in Ireland where Guinness & Co. makes almost €2 billion annually. The company has had its headquarters in London from 1932 onwards. It merged with Grand Metropolitan plc in 1997, and is now part of the British based multinational alcohol conglomerate Diageo.
The beer is brewed under licence internationally in several countries, including Nigeria,the Bahamas, Canada,Cameroon, Kenya, Uganda, Namibia, and Indonesia. The unfermented but hopped Guinness wort extract is shipped from Dublin and blended with beer brewed locally. The UK is the only sovereign state to consume more Guinness than Ireland. The third-largest Guinness drinking nation is Nigeria, followed by the USA.
Guinness has a significant share of the African beer market, where it has been sold since 1827. About 40% of worldwide total Guinness volume is brewed and sold in Africa, with Foreign Extra Stout the most popular variant.
Guinness Nigeria, is a subsidiary of Diageo Plc of the United Kingdom. Guinness Stout was first exported to Sierra Leone in 1827 and soon became popular across West Africa. In 1963, Ikeja in Lagos Nigeria was chosen as the first location outside the British Isles to brew the iconic dark beer. Two years later, in 1965, Guinness Nigeria was listed on the Nigerian Stock Exchange.The brewery was the first Guinness operation outside Ireland and Great Britain. Other breweries have been opened over time – Benin City brewery in 1974 and Ogba brewery in 1982.
Guinness Nigeria is an iconic African company, renowned internationally for its brands of unmatched quality.
Guinness is a truly successful company with a rich heritage and a great track record of growth and strong performance. Guinness Nigeria is not only regarded as an iconic African company, but is also renowned internationally for its brands of unmatched quality. Here is a list of Guinness Nigeria’s major achievements since the 19th century.
19th- Century Guinness Stout first imported into Nigeria.
1950s- Trading company for Guinness established in Nigeria.
1962- First Guinness brewery outside of Ireland and Great Britain built in Lagos.
1962- Guinness Eye Hospital built in Lagos University Teaching Hospital (LUTH).
1965–Guinness Nigeria is quoted on Nigeria Stock Exchange with 1,200 investors.
1974- 2nd ultra-modern brewery built in Benin to produce Harp Lager..
1978–3rd brewery built at Benin to produce Guinness Stout.
1982- 4th brewery built in Ogba to produce Harp Lager, and later Guinness Stout.
1986- Guinness Nigeria invests in farming of maize and sorghum to replace imported barley.
1990- Malta Guinness launched into the Nigerian market.
1990- Guinness Nigeria invests N1.6billion (£45 million) in upgrading its breweries.
1991–Another Guinness Eye Hospital built in Onitsha.
1997- Guinness Nigeria becomes a subsidiary of Diageo Plc, thus gaining access to Diageo’s range of global brands and technical support.
1997–1st Water of Life mini-water works commissioned at Oregbeni/Benin, Edo State.
2001- Guinness Nigeria records over 60,000 investors, share capital value of N354million (£2.1 million) with shareholders’ funds of N14,158million (£84.95m)
2001- Gordon Spark, an exotic ready-to-drink product is launched into the Nigeria market.
2003- 1st Corporate Citizenship Report launched to highlight the company’s contributions to the society.
2004- Guinness Nigeria commissions another brewery in Aba, Abia State.
2004- Commissions the 2nd Water of Life mini-water works project in Aba, Abia State.
2005–Commissions the 3rd Water of Life mini-water works project in Badia Lagos.
2005–Guinness Extra Smooth is launched in the Nigerian market.
2006–Smirnoff Ice launched into the Nigerian market.
2007–Guinness Nigeria becomes the 1st brewery in West Africa to be ISO 14000:2004 certified – the highest certification available for clean environmental standards globally.
2007- Guinness Nigeria provides water to an additional 500,000 people in Nigeria under the Water of Life scheme with mini-water works located in Lagos, Anambra, Ogun, Imo, Rivers, Nassarawa, Niger, Ekiti, Kwara and Edo states respectively.
2007- Guinness Nigeria becomes the 1st manufacturing company to become ISO 22000 certified for food safety standards.
2007- The International Institute for Quality Selection, Bruxelles, endorses Foreign Extra Stout and Guinness Extra Smooth with Grand Gold Medals. Harp Lager and Satzenbrau awarded Gold Medals for surpassing international quality standards.
2008- Ogba Brewery emerges as Africa’s best in the Guinness League of Excellence.
2008- Guinness Nigeria goes live on SAP.
2008- The International Institute for Quality Selection, Bruxelles endorses all Guinness Nigeria brands with Grand Gold Awards at the Monde’s 47th International Awards for surpassing international standards.
2009- Brand Guinness celebrates 250 years of iconic existence globally.
2010- Guinness Nigeria celebrates its 60 years of brewing excellence in Nigeria.
2011- Guinness Nigeria signs into the Convention of Business Integrity (CBi).
2011- Harp Lime, a cool new flavoured Harp Beer is launched into the Nigerian market.
2012- Dubic Extra Lager, a beer with a great Nigerian heritage, is launched in Aba and Ibadan simultaneously.
2012- The 1st solar-powered Water of Life mini-water works is commissioned in Awba Ofemili, Anambra State.
2012- Guinness Nigeria wins the Best Place To Work in Nigeria and the Best Multinational Company in Nigeria Awards.
2012-Malta Guinness Low Sugar, a new low-sugar Malta variant filled with top-of-the-world goodness and vitality is launched into the Nigerian Market. in the same year, SNAPP was also launched targeted at women.
2014- Guinness Nigeria launches Orijin Ready to Drink (RTD), an alcoholic drink with the bitter-sweet taste of African herbs and fruits, which went on to become the fastest growing innovation brand in Diageo history.
2015- Guinness Nigeria launches Guinness Africa Special, the first innovation for Guinness in Africa in over 10 years.
2016- Guinness Nigeria launches Orijin Zero, a non-alcoholic variant of the popular Orijin RTD, targeted at consumers who want to enjoy the bitter-sweet taste of Orijin but without the alcohol.
2016- Guinness Nigeria is named the third best place to work in Nigeria and named the best in Excellence in Wellness by the Great Place To Work Institute.
Guinness Nigeria and its parent company Diageo has managed to retain a 27% market share in a highly competitive and increasingly fragmented market. The stalwart of the Nigerian Beer Market however, is beer giant, Nigerian Breweries Plc. with an impressive 61% share. Although a smaller share of 10% is held by their sister company, Consolidated Breweries; their parent company, Heineken has a combined share of 71% of the entire Nigerian Beer Market.
Recent news announces the emergence of South African Breweries Miller’s (SAB Miller) Hero lager into the Nigerian Beer Market by the acquisition of Padbod Breweries in Port Harcourt. This can only mean that the Nigerian mainstay firms cannot rest on their laurels as a new dynamic is about to be introduced into the already highly competitive market.
Guinness has done exceptionally well to retain a significant share, despite having sustained substantial losses in a fluctuating market place. A financial statement recently released by Guinness at the end of December 2013 showed a 13.3% decline in sales in comparison to the previous year, equating to a decrease in profit from N60.9billion to N52.8billion. According to these statistics, the decline was evidenced in the last 6 months of 2013, with the last 3 months witnessing a fall in sales of 18.4%. Guinness were also hit by a 22% decline in earnings per share in the second half of 2013 in comparison to their value in the second half of 2012, falling from N426 to N332 per share.
Despite these set-backs, Guinness has remained resilient, implementing new strategies and appointing a new CEO, Seni Adetu whose main objective is to drive the company forward and to give them a competitive edge. Guinness plans to remarket their strongest products such as Guinness, Harp and Guinness Malta, using a third party distribution network to expand their nationwide reach.
Business analysts have cited a lack of variety in their product range and limited visibility as the main reasons for the significant drop in sales. This differs from popular opinion, which cites price as the most significant cause of the decline in sales. The Nigerian consumers believe that if Guinness wishes to obtain a greater share of the Nigerian Beer Market, they should consider introducing some low-price brands into their product offerings and execute a marketing strategy which appeals, not only to those with high incomes, but also to beer lovers who are working within a budget. This is no time for complacency, a strategy combining these three factors may be just the panacea they need!
Drinks.ng’s partner Guinness Nigeria announces plans to roll out DRINKIQ workshops to University of Lagos Students
Guinness Nigeria has always taken their responsibilities to promote sensible drinking seriously and have recently “put their money were their mouth is!” The Beer Giant has recently announced their plans to roll out their bespoke DRINKIQ workshop to first year students of the University of Lagos. DRINKIQ is a pilot scheme which will take this interactive platform to the segment of the community who are most in need of guidance on sensible drinking!
The DRINKIQ model seeks to educate students on the effects of binge drinking and alcoholism, seeking to furnish the first year students with the knowledge and information they require to learn to handle alcohol with care. These workshops will also endow the students with information on the adverse effects that drinking to excess can have on your body and your overall health.
As Guinness Nigeria’s online partner, we at drinks.ng are delighted to endorse this endeavour as it is outstanding example of an organization with a social conscience. The first DRINKIQ workshop was carried out during orientation week amongst first year students at the University of Lagos and it was a resounding success!
The Keynote speaker at the initial session was Mrs. Adrianne Nwagwu, (Head of Sustainability and Responsibility for Guinness Nigeria) who confirmed that main purpose of implementing the DRINK interactive workshops was to minimize the number of cases of alcohol abuse and its repercussions amongst university students: “As a company that produces alcoholic beverages, we want to ensure that people consume and enjoy alcoholic beverages the right way, at the right age, and at the right time; and also to reduce significantly, the unwanted effects of alcohol misuse on individuals and our environment”.
Mrs, Nwagwu further emphasized the importance of ‘knowing your limit’ and not being coerced by friends to drink more than you can handle and further amplified that the legal drinking age in Nigeria is 18. During the workshop she advocated a common sense approach, giving practical examples of “sensible drinking techniques” such as: “part of making responsible drinking decisions is that if you must drink at all, endeavour to alternate alcoholic drinks with water because it helps to keep you refreshed. In addition to this, eating before or whilst drinking is also good as it helps to reduce the speed of alcohol absorption. You must also avoid mixing different drinks in order to keep track of your alcohol intake and you must never be involved in drink driving”.
Professor Olukayode Amund, (Dean of Academic Affairs at the University of Lagos) welcomed the pilot scheme, praising Guinness Nigeria for their social conscience: “It is not often that we see an alcoholic beverage manufacturer coming to educate people in how to drink responsibly. We are very pleased to have you here today and we look forward to a closer working relationship with you”.
Additionally, Guinness Nigeria has produced accompanying written materials on sensible drinking and the adverse affects of drinking. They have made these materials readily available to the university, supplying them to the counselling teams and enabling the university to upload the materials to their intranet in order to extend their reach to second and third year students.