1.1 Background of the Study
Guinness Nigeria (plc) bottling company in Nigeria is one of the largest independent manufacturer and distribution of the well known and widely consumed brands of beers and soft drinks in Nigeria. their brands include; Guinness extra stout, Extra smooth, Harps, Guinness Malta, Snapp, Malta Guinness, Low Sugar and Orijin which they produce and market from many manufacturing plants. They also market over 200 distribution centres that we also called depots, spread over the nooks and crane of Nigeria. Their workforce is over in the neighbourhood of 35 employees. the cost associated with a unit of sale increase in Q2.2009 over the corresponding period in Q2.2008. This is reflected in the PBI margin which decreases to 5.62% in the Q2.2009, 6.44% as at Q2. 2008, and down from 6.38% as at the end of the financial year in March 2009. This shows that the companies total cost as a percentage of to stands at 94.38% up marginally from 93.36% recorded in the corresponding period of 2003. PAT margin currently stands at 4.78%, down to 5.26% in the corresponding that the percentage of 90, PBT and PAT in the Q2 2009 ended march to the 2009 show that it performs better both in log line and bottom line in HYI. This can be attributed to the Christian and New Year sales and other ceremonies usually associated with year end. to provide a system that will reduce the overhead in maintaining independent date fills with its associated redundancy and integrity problems.
Guinness Nigeria, a subsidiary of Diageo PLC of the United Kingdom, was incorporated in 1962 with the building of a brewery in Ikeja the heart of Lagos. The brewery was the first outside of Ireland and Great Britain. Other breweries have been opened overtime- Benin City brewery in 1974 and Ogba brewery in 1982. Guinness Nigeria PLCs water of life initiative currently provides portable water over 500,000 Nigerians spread across several rural communities, from Northern to Southern Nigeria. It funds scholarship and also provides Guinness Eye Hospitals in three cities in Nigeria. Before prohibition, a nationwide ban on the sale, production, importation and transportation of alcoholic beverages from 1920 – 1933, Guinness Nigeria comprised hundreds of small brewers that brewed full-flavoured beers. But after prohibition, domestic brewers largely shifted towards producing less flavourful, lighter beers that used lower cost ingredients and could be mass-produced to take advantage of economies of scale. As the industry consolidated, Guinness Nigeria Plc became one of the two major brewers in the United States distribution company and in Nigeria as a whole, making up 90% of all domestic beers production today and making available their entire product in both rural and urban areas. They as well dominated the four corner of the country with their products.