Global distribution agreement

RNS Number : 9145N

Diageo PLC

26 February 2009

 



26th February 2009

Diageo acquires global distribution rights for Windhoek beer

Diageo, the world's leading premium drinks business, today announced that it has reached an agreement with Namibia Breweries Limited ('NBL') which gives Diageo the right to brew and distribute Windhoek globally except for certain African markets, for an initial term of 10 years at a nil initial consideration. 

Windhoek brands are currently distributed in South Africa through brandhouse - the Diageo joint venture with NBL and Heineken. NBL, in which Diageo has a 14.6% stake, will continue to produce and distribute Windhoek in Namibia. In the rest of southern Africa, Diageo and NBL have entered into a further agreement to combine their distribution networks with Diageo taking initially commercial responsibility for the combined portfolio.

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.' 

Sven Thieme, Chairman of NBL, said: 'Diageo's global platform and its reputation in developing premium brands around the world will enhance the growth of Windhoek. We have enjoyed a good partnership with Diageo through the brandhouse venture, and we look forward to working closely with them in other markets.'

Through the agreement announced today, NBL retains ultimate ownership and control of the Windhoek brand as per the licence structure and other protection rights set out in the agreement.

-ENDS-

For further information

For Diageo Investor Relations

Stephen Howe 

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For Diageo Media Relations

Rachael Shaw        

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James Crampton

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Notes to Editor

About Diageo 

Diageo is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, wines, and beer categories. These brands include Johnnie Walker, Guinness, Smirnoff, J&B, Baileys, Cuervo, Tanqueray, Captain Morgan, Crown Royal, Beaulieu Vineyard and Sterling Vineyards wines. 

Diageo is a global company, trading in more than 180 countries around the world. The company is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE). For more information about Diageo, its people, brands, and performance, visit us at Diageo.com. For our global resource that promotes responsible drinking through the sharing of best practice tools, information and initiatives, visit DRINKiQ.com.

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About Windhoek beer

The Windhoek beer brand has three principal brand variants namely Windhoek Lager, Windhoek Light and Windhoek Draught. Windhoek beers are pure, high quality beer brands with a unique and long heritage, brewed in Namibia. Namibia Breweries Limited's beers are brewed in accordance with the Reinheitsgebot - the German purity law of 1516, which prescribes the exclusive use of malted barley, hops and water with no additives, colorants or preservatives.

Windhoek and Windhoek Light have, between them, won numerous gold medals and silver medals at the Deutsche Landwirtschafts-Gesellschaft awards for the years 2005, 2006, 2007 and 2008. The DLG was founded in 1885 and is internationally recognized as one of the biggest and most highly regarded specialist organizations in the food and beverage sectors.

Windhoek Light was also named as the world's best light beer in September 2005 in the Brewing Industry International Awards, which have been awarded since 1886, receiving the gold award in the International Non-Alcoholic and Low Alcohol beer category.

 

END

 

 

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