GOLDEN Guinea Breweries Plc has won an eight-year long N10 billion suit against International Breweries Plc and Anheuser-Busch InBev (AB InBev).
The Umuahia Abia State-based brewer had approached the Federal High Court in 2016 demanding for general damages in the sum of N10 billion from Pabod Breweries Limited, a company which AB InBev has a controlling equity stake. Golden Guinea had said that Pabod infringed on its trademark for the production of Eagle Stout.
Justice Stephen Dalyop Pam of the Federal High Court, Port Harcourt Division, ruled on March 6, 2024 after hearing Omolola Aderolu of Johnson Bryant’s submission on behalf of Golden Guinea Breweries Plc and S. Nmor for the defendants.
In a four-page court judgment seen by BusinessDay, the Federal High Court granted, among others, ruled that Golden Guinea Breweries Plc as a registered proprietor of the ‘Eagle Stout’ trademark registered as No. 21153 in class 32 at the Nigerian Trade Marks Registry Abuja.
The court ruled that Golden Guinea is entitled to the exclusive use of the mark for the production, sale and distribution of the product in the Nigerian market.
Also, the Federal High Court judge ruled in the suit number PHC/PH/CS/647/2016 that Golden Guinea Breweries as registered proprietor of the Eagle Stout trademark is entitled to exclusive use of the mark for the production, sale, and distribution of 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’.
The court also restrained the defendants from 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 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.
In addition to filing an appeal, IBPLC also filed interlocutory and post judgment applications at the Court of Appeal and Federal High Court seeking several reliefs, including an order for stay of execution of the judgment.
However, Marian Reginald-Ukwuoma, company secretary / legal counsel, International Breweries Plc, told BusinessDay on Tuesday, July 16, that the company has filed an appeal against the said judgment.
“To the extent that the appeal is sub judice, International Breweries Plc as a responsible and law-abiding corporate citizen will refrain from commenting on the propriety of the Federal High Court judgment and/or the outcome of its appeal at the Court of Appeal.
Reginald-Ukwuoma noted that, “International Breweries has since compiled and transmitted the Records of Appeal and the Court of Appeal is now seized of the proceedings with the appeal constituted as CA/PH/191/2024. International Breweries has also filed all relevant appellate processes for the just and effective determination of the appeal.”
“We remain focused on navigating this legal challenge with integrity and professionalism as we have full confidence in the Nigerian judicial system and look forward to the resolution of the matter,” the company noted.
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.
Others are: 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 752.508 million units or 75 percent.
With its newly installed equipment with a 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 of 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 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 75 percent of Intafact, 82.8percent of Pabod Breweries, and 72.2percent of International Breweries.
Before the takeover by AB InBev, SABMiller, which 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 lawyer.
Okwukwu, who happens to be former Secretary General, Ohaneze Ndigbo Worldwide, noted that the order of perpetual injunction restrains the defendants and all other persons from obliterating 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 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 shut down in 2003 following a fire outbreak which affected its boiler.
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. 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 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,” the company noted in the financial statement at the NGX.
