27 February 2009 Diageo Windhoek

27 February 2009

Diageo to distribute Windhoek beer

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Diageo today announced that it has reached an agreement with Namibia Breweries Limited (NBL) to produce and distribute Windhoek beer globally. The agreement, which is for an initial 10 years term, will give Diageo the right to brew and distribute Windhoek globally except for certain African markets, including South Africa and Namibia.

Available as Windhoek Lager, Windhoek Light and Windhoek Draught, the Windhoek beers are premium brands with a unique and long heritage, having been brewed in Namibia in accordance with the Reinheitsgebot, the German purity law of 1516. They are award winning beers - Windhoek and Windhoek Light have, between them, won numerous gold and silver medals at the Deutsche Landwirtschafts-Gesellschaft1 and Windhoek Light was also named as the world’s best light beer in 2005 in the Brewing Industry International Awards.

The Windhoek beer brand has a rich heritage and a well-developed footprint in its home markets of Namibia and South Africa. Diageo currently distributes Windhoek brands in South Africa through brandhouse - its 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 South Africa, Windhoek is the third largest premium beer and grew by 6.7% per cent last year alone (end F08). In Namibia, the Windhoek Brand portfolio has grown overall by 400% since 2006. In other markets where it is available, the Windhoek Brand portfolio has grown overall by 40% since 2006.

Diageo and NBL have also entered into a second agreement to combine their distribution networks in southern African, outside South Africa and Namibia, with Diageo taking commercial responsibility for the combined portfolio.

Nick Blazquez, managing director of Diageo Africa, said: “We are very pleased that Windhoek will be joining our portfolio of premium beers. 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: “The agreement between NBL and Diageo enables Windhoek Lager and its variants to benefit from Diageo’s global distribution platform and its reputation in developing premium brands around the world. We enjoy a good partnership with Diageo already through our brandhouse venture in South Africa. We now look forward to working closely with them in other markets.”

Diageo’s beer business in Africa is performing well. The company recently announced at half-year results that Guinness delivered outstanding growth of 25% in net sales for Africa and grew 8% in volume with strong performances in Nigeria, Cameroon and East Africa.

Pictured: Diageo's CEO Paul Walsh, Namibia Breweries Limited's Chairman Sven Thieme, MD of Diageo Africa Nick Blazquez and President of Diageo International Stuart Fletcher toast the signing of an agreement that will see leading premium drinks company Diageo producing and distributing Windhoek beer globally outside of certain African markets.

From: Night Online

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