Guinness Nigeria, a subsidiary of Diageo, has announced its decision to discontinue the sale of two popular spirits brands, Johnnie Walker and Baileys, in Nigeria.
The move comes as the company grapples with challenging market conditions in the country.
Johnnie Walker and Baileys have significantly contributed to Guinness Nigeria’s revenue, accounting for approximately 6% of the company’s earnings.
The decision to halt their sale reflects the severity of the challenges faced by the beverage giant in the Nigerian market.
Guinness Nigeria cited the challenging market conditions in Nigeria as the primary reason for this strategic shift.
The Nigerian beverage industry has faced various challenges recently, including economic fluctuations, regulatory changes, and evolving consumer preferences.
In response to the evolving market landscape, Guinness Nigeria is expected to implement diversification strategies to mitigate the revenue loss resulting from the discontinuation of Johnnie Walker and Baileys.
Experts say the company will likely strengthen its other brands and explore new opportunities within the Nigerian beverage market.
Diageo, the parent company of Guinness Nigeria, has reaffirmed its commitment to the Nigerian market.
It said the decision to cease the sale of the two brands is considered a strategic move to adapt to changing market dynamics while continuing to invest in the Nigerian beverage industry.
It remains to be seen how this decision will affect consumer choices and preferences within the Nigerian spirits market. However, there are rumours Diageo might get other sources to market the brands in Nigeria.