Guinness Nigeria Gains 27% Market share
Guinness Nigeria and its parent company Diageo has managed to retain a 27% market share in a highly competitive and increasingly fragmented market. The stalwart of the Nigerian Beer Market, however, is beer giant, Nigerian Breweries Plc. with an impressive 61% share. Although a smaller share of 10% is held by their sister company, Consolidated Breweries; their parent company, Heineken has a combined share of 71% of the entire Nigerian Beer Market.
Recent news announces the emergence of South African Breweries Miller’s (SAB Miller) Hero lager into the Nigerian Beer Market by the acquisition of Padbod Breweries in Port Harcourt. This can only mean that the Nigerian mainstay firms cannot rest on their laurels as a new dynamic is about to be introduced into the already highly competitive market.
Guinness has done exceptionally well to retain a significant share, despite having sustained substantial losses in a fluctuating market place. A financial statement recently released by Guinness at the end of December 2013 showed a 13.3% decline in sales in comparison to the previous year, equating to a decrease in profit from N60.9billion to N52.8billion. According to these statistics, the decline was evidenced in the last 6 months of 2013, with the last 3 months witnessing a fall in sales of 18.4%. Guinness was also hit by a 22% decline in earnings per share in the second half of 2013 in comparison to their value in the second half of 2012, falling from N426 to N332 per share.
Despite these setbacks, Guinness has remained resilient, implementing new strategies and appointing a new CEO, Seni Adetu whose main objective is to drive the company forward and to give them a competitive edge. Guinness plans to remarket their strongest products such as Guinness, Harp, and Guinness Malta, using a third-party distribution network to expand their nationwide reach.
Business analysts have cited a lack of variety in their product range and limited visibility as the main reasons for the significant drop in sales. This differs from popular opinion, which cites price as the most significant cause of the decline in sales. The Nigerian consumers believe that if Guinness wishes to obtain a greater share of the Nigerian Beer Market, they should consider introducing some low-price brands into their product offerings and execute a marketing strategy which appeals, not only to those with high incomes but also to beer lovers who are working within a budget. This is no time for complacency, a strategy combining these three factors may be just the panacea they need!
For more information on Guinness Nigeria and their parent company Diageo, see the full article at https://businessday.ng/enterpreneur/article/how-far-can-guinness-strategies-go/
Drinks.ng supplies a complete range of Guinness and Diageo products; for more information on our comprehensive suite of beverages see our website: drinks.ng
By Stephanie Murphy