Daily Insight: How competition is reshaping the Nigerian Beer Market

Must Read

TAJBank Launches Nigeria’s 2nd Non-Interest Financial Institution (Photos)

Abuja Nigeria   December 2nd 2019, TAJBank, Nigeria’s second Non –Interest financial institution, has announced the launch of its services...

Buhari Appoints CBN Deputy Gov, Edward Adamu, As AMCON Chairman

President Muhammadu Buhari has appointed Mr Edward Adamu as Chairman of the Asset Management Corporation of Nigeria (AMCON). The appointment...

Here are the world’s most popular city destinations in 2019

Euromonitor International recently released the “Top 100 City Destinations 2019” ranking report, covering the world’s leading cities ranked by...
- Advertisement -
- Advertisement -

Earlier in the year, we highlighted that intense rivalry, following the entry of AB-InBev, and a new fixed rate charge on alcoholic beverages, which became effective in In Jun-18, were the factors to watch in the Nigeria beer market in 2018. Looking at the Q3-18 earnings, we note that increased competition has actually constrained price increases despite government levy on beer.

Daily Insight: How competition is reshaping the Nigerian Beer Market

With the completion of its new plant in Shagamu, AB-InBev flooded the market with its regional premium, Trophy lager and simultaneously introduced its flagship premium beer, Budweiser, into the Nigerian market. This boosted supply, constrained volume growth and forced key competitors (Nigerian Breweries (NB) and Guinness), to hold-off plans to pass on the burden of the new fix charge on beer to consumers.

Read:  Marriott International Expects To Add 40 New Properties Across Africa by 2023

Accordingly, NB’s 9month revenue fell 6.5%y/y to N238.1bn while PAT tumbled 38.4% to N14.8bn. Notably, NB reported a negative operating profit of N3.9bn in Q3-18 amid volume pressures. Similarly, GUINNESS’s 3month revenue also weakened 3.3%y/y to N28.9bn on weaker volumes, although PAT recovered significantly due to improved finance cost. On the contrary, INTBREW sustained an aggressive q/q topline growth as its Q3-18 standalone revenue came in higher at N30.2bn, the highest in the last four quarters. Overall, we see further pressure on NB and GUINNESS’s numbers going forward.

Read:  AB InBev reports 4.8% revenue growth for 2018, Volume and Market share Grew in Nigeria



- 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.


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

MUSON Appreciates MTN Foundation, others with Donors Concert

The Musical Society of Nigeria (MUSON) hosted donors to an appreciation concert as part of its end of year...

Airtel set to list on Malawi Stock Exchange

London and Lagos, 11 December 2019: Airtel Africa plc ("Airtel Africa" or "Group"), a leading provider of telecommunications and mobile money services, with a...

ASUU Strike, Naira Marley, what is xenophobia, Wizkid searches top the 2019 Google trending list

What were Nigerians searching for in 2019? Which singers were searched for the most this year? What was the top trending news moment...

Domestic Price of Turkey Increased By 38% to N1,800 per kg – Report

Turkey is a commodity best known for its seasonal consumption – Thanksgiving, Christmas and Easter. The estimated spend on the commodity in the US...

More Articles Like This