Report says Nigerians now drink less of Heineken beer

Heineken NV, has released its 2018 Q3 financial result for the period ended 30th September 2018 with an increased beer sales in all four of its global regions during the period.

The beer company consolidated its beer volume +4.6% organically, with growth in all regions. It recorded a +9.2% with double-digit growth in Africa, Middle
East & Eastern Europe and the Americas.

The Dutch maker of Heineken, Europe’s top-selling lager, as well as Tiger, Sol and Strongbow cider, said its consolidated beer volumes rose by 4.6 percent year-on-year to 62.6 million hectoliters in the July-September period.

Nigeria in the mix

The sale in Nigeria, a major Heineken market declined by high-single digit, this was due to an increased competition in the beer market.  However, in Egypt beer volume was up by double-digit, driven by increased tourism and a more stable economic environment. While in the Democratic Republic of Congo the decline in beer volume moderated to mid-single digit as the business laps prior year price increases

Heineken faces stiff competition in the Nigerian market.

The three major players in the Nigerian beer market Heineken N.V. owners of Nigerian Breweries (NB), AB InBev owners of International Breweries and Diageo-owned Guinness Plc have stepped up their game in their bid to gain market share and profitability.

NB currently owns two key brands in the premium lager segment (Heineken and Tiger) and continues to face a tough competition from International Brewery’s recently-launched global brand, Budweiser dubbed king of Beer while Guinness Nigeria has Harp in this segment.

Recalled that Jean-Francois van Boxmeer (Executive Board & CEO) admitted that the Heineken is facing tough challenges in Nigeria. A combination of factors, including the Budweiser launch and a struggling economy from oil price falls, has seen price pressure on Heineken in the premium lager segment.

According to him

“Volume growth continued in the third quarter, benefiting from good weather in Europe and strong growth in Brazil, Mexico, Vietnam, and South Africa. The Heineken® brand continued to outperform, driven by Brazil, South Africa, France, and Russia. In August, we announced the signing of non-binding agreements with China Resources to join forces to win in China. Our expectations for the full year 2018 remain unchanged.”

Heineken is the world’s most international brewer. It is the leading developer and marketer of premium beer and cider brands, the Group has a portfolio of more than 300 international, regional, local and specialty beers and ciders.

 

 

Source: Nairametrics

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