Beer output estimated to have increased by 9 percent in 2009
Castel, traditionally the more secretive of the two, has not released any targets it set itself for Nigeria. So no one knows whether it fell short of them. But SABMiller reportedly wanted to increase the output of Pabod Breweries eightfold to 250,000 hl by February 2010. A good indication that it missed its mark is the brewer’s recently released third quarter statement which makes no mention of Nigeria at all.
Still, the Nigerian market promises rich pickings for international brewers.
GDP is projected to grow by more than 5 percent per annum in the coming years, which has led Euromonitor, a market research company, to conclude that beer output will rise 8 percent (CAGR) between 2009 and 2014.
Local media reports claim that the brewing industry’s turnover rose by a stunning 25 percent in 2009 compared to 2008.
Although full year figures are not available from the country’s leading brewers, the latest figures released by Nigerian Breweries for the half-year ended 30 June 2009 show a 22 percent rise in turnover and a 37 percent rise in profits after tax compared with the first half of 2008.
By all accounts, demand for beer is holding firm even if purchasing power has collapsed across the board in Nigeria.
The beer industry’s near and mid-term prospects remain quite positive on account of Nigeria’s low per capita consumption estimated at a mere 9.6 litres.
Also listed among the key factors to drive growth in the future is Nigeria’s burgeoning young population.
And not to forget the up-coming General Election in 2011 with its pre-election rallies, where political parties will dish out money to voters in exchange for votes. Brewers know from experience that much of this money will be taken straight to the nearest bar.
