Nigeria’s Brewery Sector: Review and Outlook

Must Read

Burger King Announces Grand Entry In To Nigerian Market, Promises First Restaurant In August 2021

Allied Food and Confectionary Services Limited announced exciting plans to launch and grow the Burger King® brand in Nigeria,...

List of First Bank of Nigeria Sort Codes in Nigeria

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

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 -

Unsurprisingly, the performance of brewers in 2019 was driven by developments in the competitive landscape. The intense competition, especially from International Breweries Plc (INTBREW), created no room for other players to increase prices and pass on the impact of the graduated excise duty to consumers, which grew further in Jun-19. This was as INTBREW continued to flood the market with its regional and international premium beer brands, Trophy lager and Budweiser while undercutting competitors’ market share.

Nigeria’s Brewery Sector: Review and Outlook - Brand Spur

However, Nigerian Breweries Plc (NB) was able to wrestle back some lost market share in H2-19 as it rolled-back on previous product price increments and embarked on a massive advertisement campaign around Heineken, Star, and Maltina brands. Also, the rollout of Tiger brand late Q3-19 supported NB’s topline growth. However, Guinness Nigeria Plc (GUINNESS) suffered the most, losing the beer market share to the other two players while focusing on growing its high yielding Spirits segment.

In 2020, we believe the competitive landscape for the domestic brewers will remain challenging. Specifically, we expect all three key players to continue their battle for market share. However, pressures on the cost line would remain a peculiar concern for INTBREW despite expected improvement in finance costs post-rights issue.

Read Also:  Protea Hotel Fire & Ice! by Marriott opens in Durban (Photos)
- Advertisement -

Meanwhile, GUINNESS’ performance may be supported by its growing Spirits line, but this may not be enough to boost top and bottom-line growth, especially as excise duty on Spirits is scheduled to graduate further in 2020.

UNITED CAPITAL RESEARCH

- Advertisement -
Nigeria’s Brewery Sector: Review and Outlook - Brand SpurNigeria’s Brewery Sector: Review and Outlook - Brand Spur
- Advertisement -

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.

Nigeria’s Brewery Sector: Review and Outlook - Brand SpurNigeria’s Brewery Sector: Review and Outlook - Brand Spur

Latest News

How The Trump Plaza, Atlantic City, Came to be Demolished

It is not so often nowadays that a building is simply demolished, particularly not one of this scale. We...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Nigeria’s Brewery Sector: Review and Outlook - Brand SpurNigeria’s Brewery Sector: Review and Outlook - Brand Spur