GLOBAL: Diageo acquires rights to Windhoek beer
Diageo plans to expand Windhoek beer across Africa after acquiring the global rights to produce and distribute the brand outside of its key South African and Namibian markets.
Diageo said today (26 February) that it has signed a 10-year licence deal with Namibia Breweries Ltd (NBL) for global rights to Windhoek, at no initial cost. Diageo holds a 14.6% stake in NBL.
The deal gives Diageo full rights to the brand outside of certain African markets, including South Africa, where Diageo distributes Windhoek via a joint venture with Heineken, and the beer's home market of Namibia.
A Diageo spokesperson told just-drinks today: "Windhoek will continue to be brewed in Namibia and we are initially looking introduce Windhoek to markets within Africa."
Several African countries have strongly developing beer consumption. Net sales of Diageo's Guinnesss brand rose by 25% across Africa in the six months ended 31 December, with Nigeria, Cameroon and parts of East Africa driving growth.
Windhoek is a premium beer produced according to Germany's beer purity law of 1516. Outside of South Africa and Namibia, the brand has grown volumes by 40% since 2006, according to Diageo.
Commenting on the financial terms of the deal today, a spokesperson for the drinks giant said: "The actual transfer of the rights of the production, marketing and distribution of Windhoek is at no extra cost, but we will be investing in the brand for marketing and distribution."
"The agreement will automatically roll over for consecutive periods of five years, unless it is terminated in accordance with its terms and/or amended."
Nick Blazquez, managing director of Diageo Africa, said: "This transaction deepens our commitment to total beverage alcohol and, along with a great partner in NBL, provides us with a strong addition to our range of premium brands in Africa and elsewhere."
Industry advocates may have branded the recent tax rise for RTDs in Australia a "tax grab masquerading as health policy", but it has shown the Government's resolve when it comes to alcohol regulation....
The top ten stories published on just-drinks this week:...
On Wednesday (26 August), Heineken announces its first-half results....
Police have arrested more than 200 people in one morning in connection with alcohol-related crimes in Manchester, in a massive raid across the UK city....
Trade union officials and politicians have hit a setback in their campaign to stop Diageo cutting 10% of its Scotch whisky workforce, after an independent report said not all jobs can be saved, just-d...
In 1996, Hangzhou Wahaha Group Co, a leading beverage producer in China, began a joint venture with Danone Group to form five new subsidiaries....
Diageo is sourcing enough antiviral medicine Tamiflu for all of its employees worldwide, as it and other drinks firms ready pandemic flu strategies in response to the H1N1 'swine flu' virus....
Scotland's finance minister is to lead a meeting of trade unions, politicians and business promoters to offer Diageo an alternative to its plan to cut 10% of its Scotch whisky workforce....
- Comment - How to Target Cognac's Mok Generation?
- Will Tequila Learn from Scotch Whisky's Mistakes?
- Is Marketing Twisting the Meanings of Words?
- Sustainability - Walking the Walk on Water
- Analysis - Keurig Kold fails to impress
- Whyte & Mackay takes on Flor de Caña in UK
- SPI Group US, Canada sales chief departs
- Belvedere proposes name change
- Castel acquires stake in Belvedere
- Brown-Forman eyes family ties with board additions
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Beam Suntory Inc. - Strategy and SWOT Report
- Africa: The Final Frontier for Beer