Leading international drinks companies Heineken, Diageo and Namibia Breweries (Nambrew) have finalised the shareholder agreements for their new joint venture company in South Africa, the companies announced on Thursday.
The joint venture combines the sales, marketing and distribution businesses in South Africa of the three shareholders. The agreements were signed on April 7, the groups said, although the trading name of the joint venture company has yet to be decided.
Unconditional approval for the joint venture has already been granted by the South African competition authorities.
The move follows the acquisition by Diageo and Heineken of an effective 28,9% stake in Nambrew in July 2003. At the time of the transaction, Diageo and Heineken agreed to acquire Interbrew’s shareholding (held through Brauerei Beck) of 44% in NBL Investment Holdings and 6,8% directly in Namibia Breweries, thereby giving them the effective 28,9% in Namibia Breweries.
Simon Litherland has been appointed managing director of the new joint venture company with effect from April 2004. Litherland, who will be based in Cape Town, is currently managing director of Diageo subsidiary GuinnessUDV South Africa. He brings a wealth of experience to the new company — he was previously managing director of Baileys Global in Dublin Ireland and general manager, Diageo, in the Czech Republic and Slovakia.
Litherland said he anticipates that the shareholders’ former businesses will be fully integrated by mid-year.
“We have enormous confidence in the success of this joint venture, which will bring together some of the most able people in the industry and a portfolio of leading premium brands across the spirits and beer categories.
“Once the businesses are transferred, we will concentrate on completing our business model, transferring our staff and ensuring that the alignment of the diverse cultures of all three partners is a strengthening and positive process.
“The joint venture shareholders bring to the table exceptional values, traditions, unrivalled brand building experience and a commitment to quality and efficiency that will form a bedrock for our new company.”
Diageo is one of the leading brewers in Africa and one of the world’s leading premium drinks businesses, with a portfolio of alcohol brands across the beer and spirits categories such as Johnnie Walker, Guinness, Baileys, Tanqueray, Smirnoff, J&B, Captain Morgan, Gilbeys and Bells.
The main beer brands of Nambrew are Windhoek Lager, Windhoek Light and Tafel Lager. Other beer brands include Windhoek Special Lager, Windhoek Export, Das Pilsener and Urbock. Becks and Guinness are brewed under licence and marketed through Nambrew and Heineken has been marketed and distributed by Nambrew in South Africa since May 2003.
Heineken has the widest global presence of all the international brewers, operating in 170 countries. The group’s principal international brands are Heineken and Amstel. Heineken is the leading brand and Amstel the second-largest brand in Europe.
Heineken’s managing director for Africa, Thom de Man, commented: “Heineken brings to the joint venture its vast experience and knowledge in the beer sector across the globe and, specifically, in Africa. In addition, I am convinced that the Heineken brand will benefit tremendously from the distribution platform and the sales expertise the joint venture provides.”
Nambrew chairperson Sven Thieme added: “The [Nambrew] brands have proven their popularity among South African consumers as is reflected in the growth of their market share in the premium beer segment over the past couple of years. The new joint venture offers vast opportunities to accelerate this growth over the medium term.
“We are confident that the collective human capital united in the joint venture will enhance the existing relationships with our customers. In addition, the joint venture will offer a much wider choice of premium products to consumers. The growth brought about by collaborative partnerships of this nature will optimize the utilisation of [Nambrew’s] assets, thereby increasing shareholder value and creating wealth for all.”
The directors’ appointments to the board of the new company, effective from April 2004, are chairperson David Hampshire (British), Sven Thieme (Namibian), Thomas de Man (Dutch), Simon Litherland (Zimbabwean/British), Chris Caldwell (British) and company secretary Tshidi Seane (South African). — I-Net Bridge