AFRICA FMCG bought RIBENA and LUCOZADE FOR $14 MILLION
- Posted on April 12, 2022
- By Osinachi Gift
The Japanese firm, Suntory Beverage & Food Limited (SBF) gained ownership of Ribena and Lucozade in 2016 after it partially acquired the brand from GlaxoSmithKline Consumer Nigeria Plc (GSK).
Energy-boosting drinks Ribena and Lucozade brands are now set to operate under a new owner, Africa FMCG Distribution Ltd (AFDL) following the acquisition from Suntory Beverage & Food Limited (SBF) for $14 million.
The completion of the transaction is subject to receiving merger clearance from relevant regulatory authorities in Nigeria. The total consideration of the $14 million sale transaction (|$7 million each for the transfer of share and loan) is expected to be completed in the second quarter of 2022.
SBF is the brand owner of Ribena and Lucozade since 2013 and the iconic brands are loved by consumers across the globe, including in Nigeria. SBF aims to deliver high-quality, value-added products that continuously appeal to consumers worldwide, having been a pioneer of research and development since its beginnings.
Chanrai Summit Group, the parent of AFDL, is a multi-faceted company distributing products that touch the lives of African consumers on a daily basis.
They manage a robust supply chain management infrastructure through the import, manufacture, and distribution of products covering branded Food, Fast Moving Consumer Goods, and Appliances for the best multinationals in the world.
CEO of SBF, Kazuhiro Saito, said, “As part of our regular strategic portfolio review and considering the broad options in Nigeria to accelerate the growth of our brands, we have decided that it is best to launch a new operating model in Nigeria, leveraging the extensive distribution network, and the expertise in the local market that AFDL possesses.”
Managing Director of SBFN, Anjan Patole, stated that the company was pleased with the outcome of the transaction. “The sale of our beverage operations in Nigeria signifies a fantastic opportunity to leverage on Chanrai’s Group expertise to expand the business and talents of our people beyond our current potential. Their extensive global systems, agility to changing market needs with a focus on African consumers are all qualities that aligned with that of our business here,” he said. He also expressed delight about the transaction stating that the new owner would expand the business.
The CEO of AFDL, Sherring Thekekkara, added that this investment will benefit from the strengths of both parent companies in a big way. Leveraging experience, streamlining the supply chain, enhancing manufacturing, consistent innovation, and improving seamless route to market, etc. will ensure that the Nigerian consumer continues to enjoy their favorite brands “Lucozade” and “Ribena” even more passionately.
“As part of our regular strategic portfolio review and considering the broad options in Nigeria to accelerate the growth of our brands, we have decided that it is best to launch a new operating model in Nigeria, leveraging the extensive distribution network, and the expertise in the local market that AFDL possesses,” he said.
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