Friday, June 5 2015 11.15 AM / GTI Securities Research
The Nigeria brewery industry continues to thrive, even as global consumption slows down due to the recent global economic downturn as well as increasing health awareness. Nigeria is Africa’s largest alcohol consumer, accounting for 36% of Africa’s formal alcohol market according to Deutsche Bank Market Research.
Driven largely by huge consumer market with a population constituting the largest in Africa and a growing middle class with a large number of drinking-age consumers, beer demand and intense competition amongst other driving factors; the Nigeria Beer Industry has recently evolved from a duopoly to an oligopoly with brewing multinationals battling for position in a market that has plenty of room for expansion.
The industry has metamorphosed over the years from mere production of bottled drinks to a diversified industry which constitutes a large segment of the food and beverages sub-sector currently accounting for 35.9% of the growth in the industrial sector, which grew in 2014 by 6.41% as against 0.87% in 2013.
The principal activities of the breweries industry include the production, packaging and sales of alcoholic and malt beverages. Dominant companies include Heineken commanding a 71% share of the market through its subsidiary,
Nigerian Breweries; Diageo with a 27% market share through its stake in Guinness Nigeria; while SABMiller “a South African brewery giant” has recently joined the fray with its acquisition of Pabod Breweries in 2008 and International Breweries in 2012; has shown strong growth. Others include low end gin manufacturing companies such as Casapreco and other indigenous manufacturers.
Click to Download Full Reports
DISCLAIMER/ADVICE TO READERS:
While the website is checked for accuracy, we are not liable for any incorrect information included. The details of this publication should not be construed as an investment advice by the author/analyst or the publishers/Proshare. Proshare Limited, its employees and analysts accept no liability for any loss arising from the use of this information. All opinions on this page/site constitute the author’s best estimate judgement as of this date and are subject to change without notice. Investors should see the content of this page as one of the factors to consider in making their investment decision. We recommend that you make enquiries based on your own circumstances and, if necessary, take professional advice before entering into transactions. This information is published with the consent of the author(s) for circulation in/to our online investment community in accordance with the terms of usage. Further enquiries should be directed to the author - GTI Research [firstname.lastname@example.org]