Suntory Beverage & Food Limited (SBF), the company behind Ribena and Lucozade, has agreed to sell its Nigerian subsidiary, Suntory Beverage & Food Nigeria (SBFN), to Africa FMCG Distribution Ltd (AFDL), for $14 million.
The transaction is subject to merger clearance from relevant regulatory authorities in Nigeria before it can be completed. 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 has owned Ribena and Lucozade since 2013, and the iconic brands are beloved by consumers all over the world, including Nigeria. SBF, a pioneer in research and development, aims to deliver high-quality, value-added products that continue to appeal to consumers worldwide.
The parent company of AFDL, Chanrai Summit Group, is a multi-faceted company that distributes products that have a daily impact on the lives of African consumers. They manage a robust supply chain management infrastructure for the world’s best multi-nationals by importing, manufacturing, and distributing branded food, fast moving consumer goods, and appliances.
“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 expertise in the local market that AFDL possesses,” said Kazuhiro Saito, CEO of SBF.
Anjan Patole, Managing Director of SBFN, stated that the company was pleased with the outcome of the transaction. “The sale of our beverage operations in Nigeria represents a fantastic opportunity to leverage Chanrai’s Group expertise to expand our business and people’s talents beyond our current capacity.” “Their extensive global systems, agility to changing market needs, and focus on African consumers are all qualities that align with our business here,” he said.
Sherring Thekekkara, CEO of AFDL, added that this investment will greatly benefit from the strengths of both parent companies. Leveraging experience, streamlining the supply chain, improving manufacturing, consistent innovation, and improving the seamless route to market, among other things, will ensure that the Nigerian consumer continues to benefit.