Diageo Will Sell its 58% Stake in Guinness Nigeria 

The transaction to Singaporean group Tolaram  closed at an estimated $70 million but the group will retain ownership of the Guinness brand. The sale follows a need for “a flexible and asset-light beer operating model,” Diageo said said earlier this week. It will continue to lead marketing strategy for Guinness Nigeria’s non-alcoholic malt drinks, alcoholic sodas, and beers including the flagship brand Guinness Stout, which has been sold in Nigeria for more than 70 years. An inflation rate jump from 22% to 33% in the past year has crushed Nigerian incomes as many struggle to keep up with the sharp rises in prices of food and medicines. Beer makers have upped prices multiple times this year but still wrestle with rising costs. Nigerian Breweries, owned by Dutch beer maker Heineken, suspended production and laid off staff at two of its nine plants in April citing a “tough business landscape” following a $93 million loss last year.

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