Inclusive Business Model Analysis: Guinness, Nigeria

| 18 Jun, 2024

Guinness Nigeria is a public limited company established in 1950 in Nigeria. It is a subsidiary of Diageo PLC, a global multinational that specializes in the production and distribution of alcoholic beverages. Dabol Nigeria Limited is a local off taker with operations across value chains such as maize, sorghum, sesame, and millet. Established in 2009, the company has active processing facilities in Kaduna and Ogun States in Nigeria. Guinness Nigeria has primarily sourced sorghum from Northern Nigeria and intends to diversify its sourcing to Southwest Nigeria and source from over 40,000 farmers by 2030.

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This inclusive business model analysis sought to establish how Guinness Nigeria, in collaboration with Dabol Nigeria, can sustainably expand their sourcing to Southwest Nigeria while improving farmer livelihoods.

The report makes some key recommendations including;

  1. Implement a strategy that aims to incentivize farmers by giving them access to essential services such as training, inputs, and guaranteed offtake. Additionally, competitive farmgate prices for sorghum need to be offered, ensuring a sustainable income for the farmers.
  2. The deployment of a digital tool will enable the collection and analysis of sex-disaggregated data. This data will be leveraged to strategically design a service package that caters to the specific needs of women farmers, thereby promoting gender inclusivity in the sorghum value chain.
  3. Facilitate threshing services to improve oversight at the farm level and establish reward mechanisms based on the farmer's productivity and loyalty.
  4. Further strengthen the sub-aggregators' organisational capacity by facilitating access to working capital, capacity development through training, and encouraging cross-collaboration between the aggregators to promote synergy and leverage each aggregator's unique competencies.