February 15, 2019/InvestmentOne Report
· The changing dynamics in the beer market in 2018 have seen players adopt varying strategies from pricing to product innovations in order to retain market share and remain competitive.
· We saw most brewers in 2018 increase their representation across the various beer segments as the battle for market share intensifies.
· Topline performance for most brewers continued to remain pressured in 2018 owing to intense competition, weak consumer spending as well as the inability to fully pass on the implemented increase in excise duties in 2018, all of which have combined to negatively impact margin.
· Asides from International Breweries which has consistently delivered both q/q and y/y growth in topline since the start of the year as a result of its merger and upscale in production activities, Nigeria Breweries and Guinness’ topline performance have continued to reflect the growing competition in the brewery space.
· To remain competitive, brewers appear to have paid more attention to growing volume in 2018 in place of margin, a trend we suspect may continue as we go into the 2019 financial year.