In an interview in Lagos last Friday, CEO Guinness Nigeria Plc. a subsidiary of Diageo Plc, Peter Ndegwa, has announced plans to increase exports to improve sales and generate more foreign exchange as the company battles to overcome the economic slump currently hitting the country.
The company plans to sell its Guinness Stout and herbal drink, Orijin in the South African market to boost exports and resolve the shortage of foreign exchange which is needed to purchase imported goods, the CEO said.
“With all the challenges we have had with foreign currency availability, we realize that export is a great opportunity to gain foreign exchange and stabilize.”
In the same vein, Heineken NV is also expanding activities in South Africa with its recent introduction of Sol Mexican larger as part of its plan to boost its market share against its biggest competitor SABMiller Plc.
Consumers are switching to cheaper beer brands as availability of disposable income declines. The company says it is expanding its range of spirits to include a more affordable product range.
“We are focused on brands that are lower priced, by either improving distribution or improving awareness,” Ndegwa said. “We have spirit brands across all categories but the growth is mid-to-lower end.”
There’s a lot of demand for “great brands offered by companies like ours,” Ndegwa said. “We see opportunities for growth, despite the fact that the economy doesn’t look as attractive.”
For Ndegwa, Guinness is committed to the country and will weather the economic storm the country is currently in.
