Nigeria Food and Drink Report Q4 2012

Although we see tremendous growth potential across food and drink sector in industries such as food processing, soft drinks, beer and organised food retailing, the direct consequences of food price and fuel inflation have weighed on consumers thus far in 2012. In food and fast-moving consumer goods, firms such as Nestlé and Unilever are leading the way. With incomes going up and more people able to afford Nestlé’s and Unilever’s brands, there is a lot of room for growth; in reality, only the surface of this potential has been scratched.

Headline Industry Data (local currency) ?? 2012 per capita food consumption = +9.9%; forecast compound annual growth to 2016 = +11.0% ?? 2012 beer volume sales = +6.5%; forecast compound annual growth to 2016 = +7.8% ?? 2012 mass grocery retail sales = +28.9%; forecast compound annual growth to 2016 = +33.6% Key Industry Trends & Developments

SABMiller Making Push: Multinational beverages firm SABMiller has built a fantastic beer business across Africa and has a very strong presence across the continent. The firm established a base via South African Breweries, which grew into one of the world’s largest beer companies, and then expanded into the East African Community region and throughout Francophone Africa (in partnership with Castel).

SABMiller has spread its wings far and wide as demand for commercial beer has grown. Huge Potential On Offer: Flour Mills of Nigeria (FMON), which has ambitions of becoming the world’s largest flour milling company, has announced plans to invest NGN100bn (US$600mn) over a five-year period as it looks to ramp up capacity. The idea is to leverage off Nigeria’s fast-growing economy and young population (in excess of 160mn) that, combined, provide outstanding long-term opportunities for consumer goods companies, particularly those that are already well established and able to take on ambitious investment programmes.

Table of contents

Chapter 1 - BMI Industry View

SWOT Analysis

Nigeria Food Industry SWOT

Nigeria Drink Industry SWOT

Nigeria Mass Grocery Retail Industry SWOT

Chapter 2 - Business Environment

BMI’s Core Global Industry Views

Table: Core Views

Sub-Saharan Africa Food & Drink Ratings

Table: Risk/Reward Sub-Factor Ratings Q (scores out of )

Table: Sub-Saharan Africa Food & Drink Risk/Reward Ratings Q

Macroeconomic Outlook

Table: Economic Activity, -

Chapter 3 - Industry Forecast Scenario

Food

Food Consumption

Table: Food Consumption – Historical Data & Forecasts, -

Table: Preserved Fish, -

Table: Biscuits, -

Drink

Alcoholic Drinks

Beer

Table: Beer Value/Volume Sales – Historical Data & Forecasts, -

Soft Drinks

Carbonates

Table: Carbonates Value/Volume Sales – Historical Data & Forecasts, -

Bottled Water

Table: Bottled Water Value/Volume Sales – Historical Data & Forecasts, -

Mass Grocery Retail

Table: Mass Grocery Retail Sales By Format – Historical Data & Forecasts, -

Trade

Table: Trade Indicators – Historic Data & Forecasts, -

Chapter 4 - Food

Key Industry Trends And Developments

Flour Mills Of Nigeria To Invest US$mn

Nestlé Going Strong

Olam Targeting Final Consumer In US$mn 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

Nigeria Food and Drink Report Q

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Chapter 5 - 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 6 - 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 7 - 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 8 - Company Monitor

Food

Nestlé Nigeria

UAC Plc

Drink

Guinness Nigeria

Nigerian Breweries

Mass Grocery Retail

Park ‘n’ Shop

Chapter 9 - Country Snapshot

Table: Population By Age Group, - (‘)

Table: Population By Age Group, - (% of total)

Table: Key Population Ratios, -

Table: Rural And Urban Population, -

Chapter 10 - Risk/Reward Ratings Methodology

Table: Rewards

Table: Risks

Weighting

Table: Weighting

Chapter 11 - BMI Food & Drink Industry Glossary

Food & Drink

Mass Grocery Retail

Chapter 12 - BMI Food & Drink Forecasting & Sourcing

How We Generate Our Industry Forecasts

Sourcing

Related research categories

By sector: General drinks

By market: Nigeria (in Africa)