Nigeria with Largest Population is Second to S/Africa, Consumes Only 10 Litres/Person/Year

Nigeria, with the largest population in Africa, has the second largest beer market after South Africa. This is because only 10 litres of beer is consumed per person in year.
Analysts said the security situation, among other reasons in the country is not unconnected with the current consumption level, which merely leaves Nigeria with potentials.
“The large number of youths and a growing brand-conscious middle class offer a potentially growing market for multinational beer producers. The strong potential for the expansion of the beer market comes from the current relatively low Nigerian beer consumption of just 10 liters per person per year, said Bismarck Rewane, Chief Executive of Financial Derivatives Company Limited (FDC).
Consumption of alcoholic beverages is a social activity in Nigeria and beer is the most consumed alcoholic drink in the country, amounting to 96 percent of all alcohol sales.
Three major breweries, Nigeria Breweries, Consolidated Breweries and Guinness Nigeria Plc., control 93 percent of the beer market in Nigeria. Of the three, NB and CB are subsidiaries of Heineken while Diageo has a stake in Guinness Nigeria. One of the new entrants in the market is South African Breweries Miller (SABM) which has performed well since its entry in 2009.
With eight breweries located across the country, NB has the largest installed capacity (13.5 million hectoliters) and coverage. Guinness has a capacity of 7.5 million hectoliters with its four breweries. SABM has built up its capacity (by acquisition) to 1.8 million hectoliters.
The Nigerian beer industry experienced slower growth in the financial year of 2013, heightened by security concerns in the nation and pressured household incomes which have negatively affected the consumption of beer. 
The discretionary income of consumers has come under pressure given higher expenditures on amenities. 
Rewane said, if such conditions prevail, brands like Heineken and Guinness will have a tough time maintaining their profit levels. 
It should be noted that these brands have embarked on innovative marketing strategies to prevent a downward slide in revenue and profit lev- els. 
“We highlight that the major brewers have introduced the discount-brand concept which further lowers their profit prospects”, he said.

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