Diageo downsizes UK beer business with Windhoek move

It is transferring responsibility for its Namibian Windhoek lager to specialist beer importer and distributor Morgenrot.

The Publican’s Morning Advertiser​ understands that the brand had not performed as well as expected and was too small a brand to continue as a main part of the Diageo portfolio. 

“The decision to allow Morgenrot to distribute Windhoek in the UK was a commercial decision, made to allow us to focus on our core premium brands and to support our commitment to Guinness in the UK,” said a spokesperson.

“Globally Diageo continues to develop its beer business and brands, which accounted for 22 per cent of net sales in the last financial year. Just one of these exciting developments is the new €155m brewhouse that is currently under construction at the Guinness home of St James’s Gate in Dublin.”

It is not believed to be looking at any of its other beer brands such as the East African Tusker brand or the Irish Smithwick’s Ale.

Fantastic quality​

Windhoek was launched with a fanfare at the beginning of 2010. Then UK MD Simon Litherland said at the time that it was part of a wider move for the company to “participate more broadly” in the beer category outside of Guinness.

The company will continue to look after its Jamaican Red Stripe lager brand, control of which it brought back in house from Wells & Young’s in 2010, and the Dragon Stout brand.

Morgenrot's national account director, Graham Archibald commented:“The Windhoek lager offers fantastic quality, absolute authenticity and a fabulous point of difference. 

"We believe the brand is only at the start of its life cycle in the UK and with continued consumer interest in lower ABV premium lagers, we think it has the credentials to see substantial growth."

At the beginning of this month Diageo announced a £34m injection of cash into the Guinness brand, including a new TV advert.