The agreement, which is for an initial 10-year period, and at a nil initial consideration, will give Diageo the right to brew and distribute Windhoek globally, except for certain African markets, including South Africa and Namibia.
Available as Windhoek Lager, Windhoek Light and Windhoek Draught, the brewer's beers are premium, award-winning brands with a unique and long heritage, having been brewed in Namibia in accordance with the Reinheitsgebot, the German purity law of 1516.
The brand has a rich heritage and a well-developed footprint in its home markets of Namibia and South Africa. Diageo currently distributes the brewer's brands in South Africa through brandhouse - its joint venture with Namibia Breweries Ltd (NBL) and Heineken. NBL, in which Diageo has a 14.6% stake, will continue to produce and distribute Windhoek in Namibia.
In South Africa, Windhoek is the third-largest premium beer and grew by 6.7% per cent last year. In Namibia, the brand portfolio has grown overall by 400% since 2006. In other markets where it is available, the brand portfolio has grown overall by 40% since 2006.
Diageo and NBL have also entered into a second agreement to combine their distribution networks in southern African, outside South Africa and Namibia, with Diageo taking commercial responsibility for the combined portfolio.
Sven Thieme, chairman of NBL, said: “The agreement between NBL and Diageo enables Windhoek Lager, and its variants, to benefit from Diageo's global distribution platform and its reputation in developing premium brands around the world. We enjoy a good partnership with Diageo already through our brandhouse venture in South Africa. We now look forward to working closely with them in other markets.”
