Nigeria Food and Drink Report Q1 2013
Report description
We continue to maintain our positive outlook for Nigeria's food and drink sector, based on the tremendous untapped potential of this emerging market. Yet, without a doubt, many challenges remain in the short-term. We have downgraded our growth estimate for the Nigerian economy from 6.8% to 6.6%, based on new information provided by the country's statistical agency, as well as concerns about the ongoing effects of widespread flooding, oil disruptions, and security challenges. We expect that as the severity of these issues abates, growth will rebound, and we are forecasting growth of 7.1% in 2013. Yet in 2012 ongoing weakness in the agricultural sector will harm domestic food supplies, increasing inflation (lowering private consumption as price growth erodes purchasing power) and necessitating greater imports (putting downward pressure on the trade balance). However, the long-term potential of the Nigerian consumer market is so great that with the help of industry majors such as Nestlé and Unilever who are already present and developing the market, the long-term potential is huge.
Headline Industry Data (local currency)
?? 2013 per capita food consumption = +13.3%; forecast compound annual growth to 2017 = +9.8%.
?? 2013 beer volume sales = +7.4%; forecast compound annual growth to 2017 = +8.3%.
?? 2013 mass grocery retail sales = +31.2%; forecast compound annual growth to 2017 = +36.1%.
Key Industry Trends & Developments
FMON Makes Acquisition: In November, the Nigeria-based Flour Mills of Nigeria (FMON) announced the acquisition of a controlling stake in Thai Farm International, which grows and processes cassava in the Nigerian state of Ososa. The takeover will enable FMON to maintain consistency in quality, availability and affordability of high quality cassava flour (HQCF) across the country. FMON will increase Thai Farm's capacity in the next few years in a bid to meet the growing need for HQCF by flour millers in Nigeria. Moreover, Thai Farm will be provided with strong support so that the company can diversify into the production of value adding items such as starch and sweeteners.
Nestlé Nigeria Announced Strong Profits: The Nigerian subsidiary of Swiss nutritional and consumer goods company Nestlé announced a 40.72% year-on-year (y-o-y) increase in pre-tax profit for the first nine months of 2012. Nestlé Nigeria generated pre-tax profits of NGN18.28bn (US$116.43mn) between January and September 2012. The company also reported a 20.5% y-o-y increase in overall revenue to NGN85.03bn (US$542.92mn) over the same period.
Table of contents
Chapter - BMI Industry View
Chapter - SWOT Analysis
Nigeria Food Industry SWOT
Nigeria Drink Industry SWOT
Nigeria Mass Grocery Retail Industry SWOT
Chapter - Business Environment
BMI's Core Global Industry Views
Table: Core Views
Sub-Saharan Africa Food & Drink Ratings
Table: Sub-Saharan Africa Q113 Food & Drink Risk/Reward Ratings
Macroeconomic Outlook
Table: Nigeria – Economic Activity
Chapter - Industry Forecast Scenario
Food
Food Consumption
Table: Food Consumption – Historical Data & Forecasts, 2010-2017
Table: Preserved Fish, 2010-2017
Table: Biscuits, 2010-2017
Drink
Alcoholic Drinks
Beer
Table: Beer Value/Volume Sales – Historical Data & Forecasts, 2010-2017
Soft Drinks
Carbonates
Table: Carbonates Value/Volume Sales – Historical Data & Forecasts, 2010-2017
Bottled Water
Table: Bottled Water Value/Volume Sales – Historical Data & Forecasts, 2010-2017
Mass Grocery Retail
Table: Mass Grocery Retail Sales By Format – Historical Data & Forecasts, 2010-2017
Trade
Table: Trade Indicators – Historic Data & Forecasts, 2010-2017
Chapter - Food
Key Industry Trends And Developments
Flour Mills Of Nigeria To Invest US$600mn
Nestlé Going Strong
Olam Targeting Final Consumer In US$67mn Kayass Deal
Yum! Brands Targeting Africa Growth
Lots Of Growth Room For Unilever In Africa
Olam Biscuit Acquisition Complements Its Diversification Push
Market Overview
Food Production
Agriculture
Chapter - Drink
Key Industry Trends And Developments
SABMiller Making Push
Diageo To Pump More Money Into Fast-Growing Guinness
Heineken Looking To Grow Capacity
Market Overview
Beer
Soft Drinks
Chapter - Mass Grocery Retail
Key Industry Trends And Developments
Spar To Collaborate Directly With Farmers To Serve Farm-Fresh Produce
MGR Investment Finally Coming In
Market Overview
Chapter - Competitive Landscape
Consumer Share Price Analysis
Key Players
Table: Key Players in Nigeria's Food & Drink Sector
Table: Key Players in Nigeria's Mass Grocery Retail Sector
Chapter - Company Monitor
Food
Nestlé Nigeria
UAC Plc
Drink
Guinness Nigeria
Nigerian Breweries
Mass Grocery Retail
Park ‘n' Shop
Chapter - Country Snapshot
Table: Population By Age Group, 1990-2020 (‘000)
Table: Population By Age Group, 1990-2020 (% of total)
Table: Key Population Ratios, 1990-2020
Table: Rural And Urban Population, 1990-2020
Chapter - Risk/Reward Ratings Methodology
Table: Rewards
Table: Risks
Weighting
Table: Weighting
Chapter - BMI Food & Drink Industry Glossary
Food & Drink
Mass Grocery Retail
Chapter - BMI Food & Drink Forecasting & Sourcing
How We Generate Our Industry Forecasts
Sourcing
The just-drinks office is currently: Closed
Office opening hours
Mon-Thursdays 9:00am-5:30pm
Fridays 9:00am-4:30pm
The office is closed during weekends.
Current time at just-drinks headquarters: 8:42am (Wednesday, 22 May 2013)
Need help? Contact the research team
