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The Manufacture, Wholesale and Retail of Beverages in Nigeria
Nigeria, Africa’s largest economy and most populous nation, is widely viewed as one of the most attractive consumer markets in the world. In the multi-billion dollar soft drinks sector leading international beverage brands trade alongside traditional non-alcoholic drinks, while in the alcoholic beverages market, which is valued at more than US$6.5bn, major multinational companies compete for market share with informal brewers and distillers.
Opportunities and Challenges
The high levels of humidity and heat in the country, coupled with the poor quality of the country’s tap water, continue to drive demand for processed packaged water. Nigeria, with its predominantly Muslim population, is also a growing market for alcohol-free malt beverages and so-called ‘social’ soft drinks. During the past decade, the alcoholic beverages sector has experienced strong sales growth, as upwardly mobile Nigerian consumers migrate from traditional drinks to mainstream and premium brands. However, despite its attractive demographics, the West African powerhouse is confronted by numerous difficulties. The economic downturn has resulted in foreign currency restrictions, the depreciation of the local currency, inflationary pressures and rising interest rates, while there are security concerns, notably in the northern and north-eastern regions, as well as in the oil-producing Niger Delta. There are also general problems such as the inadequate transport network, which drives up the cost of distribution, the unreliable power supply and bureaucratic inefficiencies and corruption.
The Manufacture, Wholesale and Retail of Beverages in Nigeria investigates the local beverages market, recent developments and factors influencing the success of the formal industry. The report profiles 37 companies, including market leader in the soft drinks sector, Nigerian Bottling Company Ltd (NBCL), the sole franchise bottler of the Coca-Cola Company in Nigeria, and new entrant into the market, Ajeast Nigeria Ltd, a subsidiary of the Peruvian multinational AJE Group, which produces the BIG Cola brand. Also profiled are Drinks.ng, Nigeria’s largest online beverages wholesaler, and local retailer the Artee Group, which operates Park n Shop and the Spar franchise.