The management of Nigerian Breweries Plc recently reassured investors and other stakeholders of the company of its commitment to enhance operational efficiencies and maximize value for all investors of the enlarged company. The reassurance was given when Chief Kola Jamodu, Chairman of the board of Nigerian Breweries Plc led other members of the board to the Nigerian Stock Exchange to formally introduce the enlarged company management to the Exchange and the investing public. Last December, Nigerian Breweries Plc completed a merger with Consolidated Breweries Plc to form an enlarged entity that retained the name Nigerian Breweries Plc.
At the visit, Chief Jamodu said the merger will enable the enlarged company deliver operational efficiencies and economies of scale in procurement, manufacturing and distribution. “We expect to achieve major cost savings in the areas of interest expenses, distribution/administrative cost among other operating activities where duplication will be eliminated. Expenses such as annual general meetings, board of directors’ fees and communication expenses to shareholders will also be reduced. Significant cost saving is targeted by distributing products and selling the enlarged product portfolio of the new company across the entire combined sales and distribution network of the enlarged company. The enlarged company is expected to extend market leadership, accelerate revenue growth and expand profit capacity,” he said.
On his part, the Director General of the Nigerian Stock Exchange, Mr. Oscar Onyema said “the merger is indicative of the dynamism of the market and we are very happy that it was successfully completed. Mr. Onyema noted the important position of Nigerian Breweries as the second largest listed company on the Exchange and added that the Exchange has been repositioned to provide a trusted partnership to businesses and investors.
The new Nigerian Breweries Plc has 11 breweries strategically spread across the nation, two malting plants and 19 brands including the lagers – Heineken, Star, Gulder, ‘33’ Export, Goldberg, More and Life; The Stouts- Legend Extra stout, Turbo King and Williams Dark Ale. The non-alcoholic malt drinks – Maltina, Amstel Malta, Malta Gold, Hi Malt, and Maltex. Other brands in the company portfolio are; – Fayrouz, Breezers, Ace Passion and Climax Energy drink.