Nairametrics research conducts an analysis
of the market share of the country’s largest brewers over a calendar period of
one year (January to December) and every trailing twelve months at the end of
every quarter.
According to our findings, Nigeria
Breweries remains the largest Brewer in Nigeria by Market shareholding holding
on to 54% of the total revenues of N816.7 billion reported by the three largest
brewers. Nigeria Breweries has held on to the number one spot since we started
tracking this data in 2013.
Guinness Nigeria Plc is however the most
improved of the three catapulting to the number two position at the end of
December 2021. Guinness took market share from International Breweries and
Nigeria Breweries.
During the period under review, the company
has seen its revenues for the period January to December 2021 rise to N197
billion compared to N108.4 billion in the Covid year.
This is the highest revenue Guinness has
reported in any calendar year based on our records.
Data breakdown
Third Position – International Breweries
N129.2 billion
The usurped Guinness in 2019 after the
focus on value brands effectively upending the business model and marketing
strategy for most beer makers. Wit the strength of SAB Miller (their South
African technical partners) Intl. Breweries for the first time in decades gave
Guinness and International Breweries a run for their money.
However, since their capital restructuring
program which gave ABInbev majority ownership of the beer maker, it has
struggled with the same level of growth Guinness is delivering.
At a revenue of N182 billion, it only
recorded a 33% revenue growth. IB has struggled with huge debts and lower
margins suggesting its value play is unraveling in a negative way.
Second Position – Guinness Nigeria N197.1 billion
They have officially piped International
Breweries for the second position after seeing their revenues rise by a
whopping 81.9% year on year.
Important to note that Guinness reports its
year-end on June 30th, however for this analysis we used the four quarters
ending December.
This aligns with International Breweries
and Nigeria Breweries which both use calendar years as their year-end.
We believe by the time Guinness reports its
year-end in June, its annual will top N210 billion. More on Guinness below.
First Position – Nigeria Breweries N437.2
billion
This is the largest brewer in Nigeria and
makes up about 54% of the available market share and remains the undisputed
number one based on market share and even volume of alcohol and non-alcoholic
beer sales in the country.
The company has seen its revenue rise from
N337 billion in 2020 to over N437.2 billion the first time it has ever crossed
N400 billion. Based on our estimates, Nigeria Breweries will post over N540
billion in revenues in 2022.
Just this March, its revenues soared to N137.7 billion from N105.6 billion same period last year.
International Breweries briefly took over Guinness’s number 2 spot in 2019 as Nigerians preferred value brands for Premium lagger beers. However. Guinness changed its business model in recent years after introducing several quality value brands such as its ready-to-drink and malt segments.
In its investor presentation published in
January, the company reported growth in all its segments. RTDs +80%, Malts
+149%, Premium Spirit +59%, Mainstream Spirits +38% and Brand Guinness +33%.
Guinness has also doubled its ad spend going from N5.9 billion in six months to
December 2019 to N10.8 billion in the corresponding period in 2022.
Important to also add that just like the others
Guinness has also increased its prices helping boost revenues and market share.
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