Nigerians Drinking Less Of Heineken’s 62 Billion Liters Of Beer Despite Rise In Sales Globally

Must Read

Lagos State Government bans Okadas, Tricyles, including Opay, Gokada

…Restricts Their Operations On 50 Highways, Bridges Lagos State Government on Monday wielded the big stick against the menace of...

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -
- Advertisement -

Heineken NV, the world’s second-largest brewer, increased beer sales in all four of its global regions in the third quarter and said it stuck to its full-year outlook.

Consolidated beer volume +4.6% organically, with growth in all regions. Heineken® volume +9.2% with double-digit growth in Africa, Middle East & Eastern Europe and the Americas.

The Dutch maker of Heineken, Europe’s top-selling lager, as well as Tiger, Sol and Strongbow cider, said its consolidated beer volumes rose by 4.6 per cent year-on-year to 62.6 million hectoliters in the July-September period.

The only negative spots were declines of beer sales in Nigeria, a major Heineken market, as well as the Democratic Republic of Congo, Cambodia, Poland and Spain. Heineken lager sales also fell in the Asia-Pacific region.

Brand Spur gathered that in Nigeria beer volume declined high-single digit, driven by increased competitive pressure despite a consolidated beer volume that grew organically by 3.1% in Africa, Middle East & Eastern Europe.

It would be recalled that Jean-Francois van Boxmeer (Executive Board & CEO) admitted the Heineken is facing tough challenges in Nigeria – one of the brewer’s major international markets. A combination of factors, including the Budweiser launch and a weakened economy from oil price falls, has seen price pressure on the market-leading Heineken lager. Van Boxmeer said problems have been compounded because while Heineken has taken pricing in Nigeria because of duty rises, A-B InBev, which launched Budweiser in the country in April, has not.

Read:  DIAGEO UNVEILS Drink iQ ''INDUSTRY FIRST'' e-learning tool to deepen knowledge of alcohol

READ: ANHEUSER-BUSCH INBEV’S BUDWEISER ENTRANCE PUTS HEINEKEN ON ALERT IN NIGERIA – CEO

The three major players in the Nigerian market Heineken N.V. owners of Nigerian Breweries, AB InBev owners of International Breweries and Diageo-owned Guinness Plc have stepped up their game in their bid to gain market share and profitability. Nigerian Breweries recently launched Tiger Beer into the Nigerian market, International Breweries also introduced Budweiser dubbed king of Beer into the Nigerian market, while Guinness has also increased its Spirit brands in the market.

Read:  Shipping goods to Nigeria from the US is more expensive than any other destination

In South Africa, total volume showed strong double-digit growth, driven by Heineken® and Strongbow brand momentum and an increase in promotional activity. Ethiopia delivered high-single digit beer volume growth despite increased competitive pressure and some social unrest in parts of the country. In Egypt, beer volume was up double-digit driven by increased tourism and a more stable economic environment.

Read:  BREAKFAST REPORT: THE WEEK AHEAD, STOCK WATCH & RECOMMENDATIONS FOR THE WEEK

In the DRC, the decline in beer volume moderated to mid-single digit as the business laps prior year price increases. In Russia, beer volume was up mid-single digit, driven by the continued strong growth of our economy brands portfolio and Heineken®.

Jean-François van Boxmeer, Chairman of the Executive Board & CEO, commented: “Volume growth continued in the third quarter, benefiting from good weather in Europe and strong growth in Brazil, Mexico, Vietnam and South Africa. The Heineken® brand continued to outperform, driven by Brazil, South Africa, France and Russia. In August, we announced the signing of non-binding agreements with China Resources to join forces to win in China. Our expectations for the full year 2018 remain unchanged.”

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Airtel Africa Revenue rose 9.9% and Subscriber Base touched 107 million

Telecommunications giant, Airtel Africa Plc, has announced its revenue increased 9.9 per cent to $2.522 billion during the nine-month...

Important Practice Tests and Tips That IT Professionals Should Know about to Pass Microsoft MS-200 Exam

Introduction By way of preface, administrators managing the Microsoft 365 messaging platform are proficient experts who have gone through intense training. Indeed, getting all tasks...

Lagos Bio-Safety level 3 Laboratory Commences Operations

The Lagos State Level-3 Bio-Safety Laboratory, also known as the Lagos Bio-bank, built with support from the Canadian government to ensure effective management of...

Market’s Fears Spread Along With Wuhan Virus

The sense of serious concern about the economic effects of the Wuhan virus – evident on Wall Street Friday – has turned into something...

More Articles Like This