…securing a substantial N10 billion settlement.
Golden Guinea Breweries Plc has successfully concluded an eight-year legal dispute, securing a favorable outcome in a N10 billion lawsuit against International Breweries Plc and Anheuser-Busch InBev (AB InBev).
The Umuahia, Abia State-based brewery filed a lawsuit in the
Federal High Court in 2016 seeking general damages in the amount of N10 billion
from Pabod Breweries Limited, a company in which AB InBev holds a controlling
equity stake. The brewery alleged that Pabod infringed on its trademark for the
production of Eagle Stout.
On March 6, 2024, Justice Stephen Dalyop Pam of the Federal
High Court, Port Harcourt Division, presided over a hearing involving Omolola
Aderolu of Johnson Bryant, representing Golden Guinea Breweries Plc, and S.
Nmor, representing the defendants.
In a four-page legal verdict reviewed on Thursday, the
Federal High Court granted, among other things, that Golden Guinea Breweries
Plc, as the owner of the trademark ‘Eagle Stout,’ registered as No. 21153 in
class 32 at the Nigerian Trade Marks Registry Abuja, is entitled to the
exclusive use of the mark for the production, sale, and distribution of the
product in the Nigerian market.
In the case PHC/PH/CS/647/2016, the Federal High Court judge
ruled that Golden Guinea Breweries, as the registered owner of the trademark ‘Eagle
Stout,’ has the exclusive right to produce, sell, and distribute the product in
the Nigerian market.
An order of perpetual injunction was also granted by the
court restraining the defendants and each of those on whose behalf it is used,
whether by themselves their directors, officers, servants, agents or privies or
any of them or otherwise howsoever from infringing the plaintiff trademark
registered as ‘Eagle Stout’; passing off or attempting to pass off or causing,
enabling or assisting others to pass off ‘Eagle Stout’ and for the plaintiff’s
‘Eagle Stout’ product by adopting the distinctive word ‘Eagle Stout’ on the
packets, packages or bottles of the said product falsely claiming the same to
be the product of the plaintiff; as well as producing, importing, selling or
offering for sale of distributing the product known as ‘Eagle Stout’.
Golden Guinea Breweries Plc is located on Aba Road, Afara
Layout, Umuahia in Abia State, while Pabod Breweries Limited is on 186/187,
Trans-Amadi/Elelenwo Bypass, Old Port Harcourt Two, Port Harcourt, Rivers
State. The company, which is listed on the Nigerian Exchange Limited (NGX), has
1.003billion ordinary shares of 50 kobo each issued and fully paid.
A look at Golden Guinea Breweries Plc shareholding structure
revealed: Abia State Government holds 33,911,264 units or 3.38 percent; Imo
State Government, 18,044,208 units or 1.80 percent; Ebonyi State Government,
1,563,591 units or 0.16 percent; Philmontan Nigeria Limited, 31million units or
3.09 percent; Couthinho, Caro & Co. Nigeria Limited, 13.608million units or
1.36 percent;
Holsten Baruerei AG Hamburg, 15 million units or 1.50
percent; Floco Verwaltungs-Und, 36,208,000 units or 3.61 percent; Other
Nigerian Associations and Citizens, 101,500,937 units or 10.12 percent and Pan
Marine Investments Limited has 752.508 million units or 75 percent.
With its newly installed equipment with capacity of
producing 48,000 bottles per hour (1.15million bottles per day), Golden Guinea
Breweries Plc eyes production capacity that will more than double that at
Nigerian Breweries’ Ama, Enugu plant and SABMiller’s Intafact Beverages in
Onitsha.
In October 2016, the world’s largest brewer Anheuser-Busch
InBev (AB InBev) completed a $106 billion takeover of SABMiller, the second
largest.
That merger meant that one-thirds of beer consumed comes
from the giant brewer. That merger also resulted in AB InBev taking over the
business of SABMiller in Nigeria, which has led to the merger between
International Breweries Plc (based in Ilesha), Intafact Breweries Limited
(based in Onitsha), and Pabod Breweries Limited (based in Port Harcourt) which
is the defendant in this suit. AB InBev currently owns 75percent of Intafact,
82.8percent of Pabod Breweries and 72.2percent of International Breweries.
Before the takeover by AB InBev, SABMiller, which was
hitherto owned Pabod Breweries, was the third largest brewer in Nigeria after
Heineken’s Nigerian Breweries Plc and Diageo’s Guinness Nigeria Plc. Although
SABMiller entered the Nigerian beer market late in 2009, it moved swiftly to
acquire Pabod Breweries.
“Golden Guinea Breweries Plc sued International Breweries
Plc & Anheuser Busch InBev over the flagrant use of its registered Trade
Mark ” Eagle Stout.” The Court on 6th March, 2024 gave Judgment in favour of
Golden Guinea Breweries Plc.
The Judgement delivered on 6th March, 2024 at the Federal
High Court, Port Harcourt is a reassurance that the Judiciary still is the
final arbiter of justice,” said Uche Okwukwu, a Barrister.
Okwukwu, who happens to be former Secretary General, Ohaneze
Ndi Igbo worldwide noted that the Order of perpetual injunction restrained the
Defendants, and all other persons on whose behalf they are sued, the
obliteration of all marks bearing “Eagle Stout” in their possession/custody or
control.
“The nine points detailed in the Judgment Order are stern
warnings against flagrant infringement of intellectual property of institutions
in any guise. The Nigerian economy will be better sustained by Companies
respecting and abiding by international obligations and best practices,” he
added.
Golden Guinea Breweries Plc was established by Premier of
the defunct Eastern Region, Michael Okpara. The company was originally named
Independence Brewery Limited.
It started production in 1963 with an annual capacity of 1
million gallons. The company introduced Eagle Stout to the market in 1967 but
between 1967 and 1970, further production was hampered by the Nigerian Civil
War.
Golden Guinea Breweries Plc was listed on the Nigerian Stock
Exchange (NSE) now Nigerian Exchange Limited (NGX) on January 1, 1979. Its
production was shutdown in 2003 following a fire outbreak which affected its
boiler. Pan Marine Investments Limited is currently the core investor in Golden
Guinea Breweries Plc and it has intensified efforts to further flood the market
with its products after commencing production few years ago.
In its 2022 financial year to March 31, Golden Guinea
Breweries posted revenue of N2.047 billion as against N1.463billion in 2021, up
40 percent. Though its loss widened by 121 percent to N498.6million from
N225.879million in 2021.
The financial report shows the principal activities of the
company are brewing, packaging, marketing, and distribution of Golden Guinea
lager beer, Golden Guinea Malta, Eagle Stout, Bergedorf lager beer, Golden
Malta, Oldsborg lager beer, and Oldsborg Malta.
The company gradually increased business operations in 2022,
as it resumed in 2020 financial year the principal activities, with brewing,
bottling, and marketing of Golden Guinea Lager beer, Golden Malta, Oldsborg
Lager beer, and Oldsborg Malta.
“The Company continues to carry out activities focused on
expanding capacities and accelerating penetration across the markets. Also,
positive results are being achieved in sourcing the funds and working capital
required to accomplish remaining rehabilitation activities and resume operations
on all the company’s
product lines before the end of the next financial year,” it
noted in the financial statement at the NGX.
With the efforts of the core investor, and the support of
both Abia State and Federal Government, some of Golden Guinea functioning
production equipment include the Fermenting Plants, Bright Beer Tank (BBT)
unit, two big Boilers, CO2 Plants, Mash Filter Units, the Grain Handling
Plants, Weighing Scale, Hammer Mill and Roller Mill, the Polisher, Receiving
Scale, and the Silos.
The Nigerian brewery industry is dominated by three brewing
giants that are subsidiaries of key global brands – Nigerian Breweries
(Subsidiary of Netherlands-based Heineken International), Guinness Nigeria
(subsidiary of Diageo, England but Tolaram has agreed to acquire Diageo’s 58.02
percent shareholding in Guinness Nigeria Plc), and SABMiller (Subsidiary of AB
InBev, Belgium).
Under a licensing agreement with Holsten Brauerei AG of
Hamburg, Germany, Golden Guinea Breweries Plc produces and markets Golden
Guinea Lager beer, Eagle Stout, Bergedorf Premium Lager and Bergedorf Malta,
among others.