International Breweries Plc is currently among the top breweries in Nigeria especially after the 2016 scheme of merger which was sanctioned by the Court and Regulatory authorities. This provided for the optimization of efficiencies, leverage on economies of scale and shareholder value creation amongst others. Ever since then, the company has waxed stronger.
Analysts are also quick to point to the transformational leadership of Michael Onochie Ajukwu as reason for the turnaround. Only before 2016, the firm was a small brewery almost on the verge of packing up. When Ajukwu came in as its MD, he ensured the firm was not swallowed by the hurricane called consolidation; neither did it lose its identity. Rather, it turned the uncertainty of the consolidation into opportunity for growth. As the MD, Ajukwu positioned the firm as a nimble, value-focused brewery. And it has remained so ever since, most times setting the pace in brewery Market.
It is pertinent to understand the leadership style of an individual, though it could be complex. Especially if we approach it with different individual mind-sets, viewpoints, perspectives and idiosyncrasies. Though, we may all have ideals of what makes a leader good or bad but they are often subjective, complex and sometimes contradictory. Some leaders have great communication skills and popularity, but not the vision.
This will lead us to a critical question as we take a cognitive look into the leadership of International Breweries PLC.: Has the Leadership succeeded in placing the brands under its care to the limelight? By this question, we only want to evaluate the leadership style at the company, especially amidst the stiff competition, and how Ajukwu applied their service delivery at IBPlc. I have put my stock assessment effort in context, to make it easier arriving at an answer to the question – Has Michael Onochie Ajukwu succeeded as the Managing Director of International Breweries Plc? Yes. He has succeeded. This is my honest answer.
Juxtaposing his vision and achievements, it is easy to see that he has done so well at the Brewery. His leadership scale is not limited to his skills, morality, commitment, focus or just getting the ‘right’ things done at the firm. Under Michael Onochie Ajukwu’s leadership, International Breweries Plc has not rested on its oars in delivering top-notch services to its customers within the Nigerian circle.
Ajukwu, a highly skilled business mogul with over 21 years’ experience in the banking industry and an extensive understanding of the Nigerian Political Economy with a special focus on Energy, Real Estate, and Adolescent Education.
He is an economist and finance genius who has judiciously deployed his rich skills in the management of strategic uncertainties. Not only has he improved the brewery’s balance sheet and brands, he has restored customers’ confidence in the brands, shoring its brand equity and giving shareholders more reasons to believe.
A very critical index for accessing success of a leader is his vision. What is the big picture he has set out for? Ajukwu has a clear vision and thorough understanding of his mandate.
He has remained focused and committed to developing all brands of IBPlc. He has equally applied the right leadership style and judiciously applied all resources available.
An author once said, “Since no leader actually has all the required stock in place, how one manages his or her limited stock matters and impacts on leadership quality.
The strength of a leader’s vision, the methods he employs in driving the vision, his communication and ensuing goodwill/popularity, all add up. At the end of the day, it’s the people that determine how successful or otherwise, a leader is”.
Under his leadership, International Breweries launched Naija Bar Rescue, to support Bars hit by the covid-19 lockdown.
The company compassionately felt the need to reach-out to bars, after the hit of CoVID-19 pandemic, which necessitated lockdowns and restriction of movement in most parts of the world, including Nigeria.
International Breweries, a subsidiary of AB InBev, is unarguably one of the most sophisticated breweries here in Nigeria. With a $250mn brewery situated in Sagamu, Ogun State, Nigeria, the company is apparently not here to joke with its contemporaries.
International Breweries’ site at Sagamu, is the company’s largest African brewery outside of South Africa. The company, which has an International reputation was incorporated in December 1971 under the name International Breweries Limited. The Company commenced production of its flagship product Trophy Lager in December 1978 with an installed capacity of 200,000 hectoliters per annum.
The company has undergone many expansion programmes, with the first in December 1982. After that year, the company was listed on the floor of the Nigerian Stock Exchange in April 1995.
Belgium’s AB InBev, the world’s largest brewer, acquired SAB Miller Nigeria, owner of International Breweries, Pabod Breweries and Intafact Breweries, in 2016, merging the three entities into one and adopting the name International Breweries. Before then, a merger agreement started in January 2012 when SABMiller entered into a strategic alliance with the Castel group who were majority shareholders at the time.
The corporate headquarters of the Company is located in Lagos. Starting with just two brands, Trophy Lager and Beta malt, its brand offering now includes Budweiser, Hero Lager, Castle lite, Grandmalt, Eagler Lager and Eagle Stout.
International Breweries unequivocally, ranks as Nigeria’s second largest brewery, producing top-notch beer brands. The company proudly has four breweries in Nigeria. These facilities include Ogun, Ilesa, Onitsha and Port Harcourt.
International Breweries Plc, despite reporting a third straight yearly loss coming to N12.365 billion for 2020, has made concerted efforts at picking up from these losses and satisfying its unending customers.
The company was in the forefront in the fight against covid-19 in Nigeria. It demonstrated its commitment to collaborate and partner with its stakeholders, including government, to reduce the spread and impact of the COVID-19 outbreak in Nigeria.
The company in a statement admitted that continued closure of the bars and restaurants, particularly in Nigeria, poses a risk to the continuity of these businesses which can affect our economy negatively as they are a part of the micro, small and medium enterprises that contribute to economic growth.
“Worried by this possibility, Budweiser, a brand from the stables of IBPlc., has launched a unique initiative, termed ‘Naija Bar Rescue’ to help sustain these bars during and after the pandemic, and also provide a platform for consumers to support their favorite bars”, the statement read.
Budweiser’s aim, through the initiative is to ensure that bars and pubs remain financially strong and are able to quickly resume full operations as soon as the lockdown is fully lifted, and is co-opting loyal consumers, who are also willing to see their favourite relaxation joints remain in business, into a scheme that has rightly been described as ‘first-of-its-kind’ in the country.
The company has also demonstrated its commitment to supporting government and communities in healthcare and infrastructure delivery, when it commissioned a N44 million Primary Health Care Centre in Oginigba, Port Harcourt, Rivers State. The inauguration of the project was achieved about five months after its ground breaking ceremony held in November, 2019.
All these were achieved because a leader with clear vision, Michael Ajukwu was in the saddle of power.
Olamide Adeniji is a member of the editorial team of TheScript Newspaper
