Prices of soft drinks rise amid FX woes, inflationary pressure

Prices of soft drinks are on the rise as the industry continues to grapple with the fallout from macroeconomic headwinds induced by the drop in oil price. Nigerian Bottling Company (NBC), the More »

How brewers are selling beer with folklore

As Nigeria’s recession deepens and consumers pockets are squeezed, majority of those still drinking have shifted their beer preferences to value or low cost brands. Nigerian Breweries Plc, the country’s leading brewer More »

Category Archives: Wines & Spirits

FG to raise VAT on luxury goods, including Champagne, others

The Federal Government on Wednesday unveiled a revised National Tax Policy which is meant to provide for an efficient tax system and address the low tax-to-GDP ratio.

Addressing the media on the revised tax system after the conclusion of the Federal Executive Council meeting on Wednesday, the Minister of Finance, Kemi Adeosun, said that the cabinet, which was presided over by the Vice President, Yemi Osinbajo has approved the revised National Tax Policy which will see the Value Added Tax (VAT) on luxury items, like champagne, among others raised from the current 5%.

Moët Hennessy full-year profits climb 10% on US momentum, China rebound

French luxury goods maker Louis Vuitton Moët Hennessy (LVMH) said on Thursday that revenue for the full-year ending 31 December 2016 grew 5% to €37.6bn, with the fourth quarter posting a 9% growth. Profit from recurring operations for the group reached €7 billion in 2016, an increase of 6%.

The company which makes high-end fashion & leather goods, perfumes & cosmetics, wines & spirits, and watches & jewelry said that the wines and spirits division – Moët Hennessy added €4.8bn ($5.1bn) to group sales, a 5% growth over the previous year, with good performance in all regions.

FX losses dampen Guinness Nigeria’s revenue growth

Guinness Nigeria Plc, reported its first-half results (6-months) on Thursday, for the period ending 31 December 2016.

The brewer of Foreign Extra Stout, Malta Guinness, among others posted a strong 19% revenue growth in the period under review to N59bn, from N50bn it recorded in the same period a year ago.

However, the company’s strong first-half showing was dampened by unrealized foreign exchange losses which drove up net finance cost by 166% to N4.6bn, from N1.2bn in the previous year. The resultant effect was a net loss of N4.67bn. In the same period a year ago, Guinness Nigeria posted a positive N1.2bn in profit.

Weak pound help Diageo post stronger first-half results

Diageo Plc reported on Thursday a better than expected half-year results, with sales rising 15% to £6.42bn from £5.61bn a year ago.

The company said that profits rose 8% to £1.51bn from last year’s £1.41bn. The spirits maker noted that a 17% drop in the value of the British pound following Brexit vote had a positive impact on earnings, adding around £850m ($1.07bn) to net sales. On organic basis (stripping out the effects of currency movement on revenue and profits), sales rose 4.4% while operating profits grew 4.4%.

Remy Cointreau 9-months performance boosted by 9% growth in Q3

French spirits group Remy Cointreau on Thursday reported €836.7m in revenue for the first nine months of its 2016/2017 financial year, a 4.7% growth from 2015 when it had €799.2m in sales.

Sales in the third quarter alone (Oct – Dec) rose 9% to €323.3m ($343.89m) buoyed by robust demand for its cognac in the United States, its biggest market and improving sales in China.

Diageo mulls upping stake in Indian United Spirits

Diageo Plc is weighing raising its majority stake in Indian spirits maker United Spirits Ltd (USL), according to people familiar with the matter. USL is the maker of McDowell’s No. 1 whiskey, Signature whiskey, Romanov vodka, among other spirit brands.

Diageo is said to be considering an open offer to other shareholders in United Spirits, according to people, who do not want to be identified because the matter is private.

South African wine region hit by wildfire

South African authorities say raging wildfires in the country’s wine region near Cape Town have destroyed part of the country’s oldest wine estates, while some mountain slopes above Cape Town’s exclusive beach enclave of Llandudno were also affected.

No tariff increase on food items, luxury goods as earlier reported – FG

The Federal Ministry of Finance, on Friday, clarified that import duties on luxury goods and food items have not been raised, as was earlier reported.

In a statement issued by the Director of Information, Salisu Dambatta, the ministry said that contrary to some media reports that tariffs on such items have been raised, the government had no such plans at this critical period.

Dambatta further said that instead of increasing import duties, what the government did was to reduce most of the items based on the fiscal measures for 2016.

FG raises import duties on luxury items, consumables including alcoholic spirits, beverages

The Federal Government has raised import duties on luxury goods such as yachts and sport utility vehicles (SUVs) brought into the country, but also included are alcoholic spirits, beverages and tobacco whose tariffs have risen from 20% to 60%.

Police arrest producer of counterfeit alcoholic spirits in Warri

The Delta State Police Command said it has apprehended a 39-year old man, Ugochukwu Alozie, who runs a shop where counterfeit alcohol spirits, including Red Label are produced in the Warri area of the state.