just the Facts - Nigeria and Diageo
Nigeria is now the biggest market for Diageo's Guinness beer brand
Today (15 October), Diageo is hosting its annual investor conference, which this year highlights the markets in Africa. Here, just-drinks looks at Nigeria, its beverage alcohol landscape and Diageo's presence in the country.
- Nigeria comprises a landmass equivalent to the UK and France combined
- It has the second largest economy in Africa, after South Africa
- The country is the world's 12th largest petroleum producer, and is set to rise to 11th in the near future. Oil is its largest export
- Challenges remain for the country's economy, however. Power supply is declining and not keeping up with demand, oil output and pricing has fallen slightly, and there has been a dip in government spending in 2013
- According to IMF figures, Nigeria's GDP in 2012 totalled around US$538bn. Renaissance Capital estimates that, in 2050, the nation's GDP will soar to around $5,960bn
- The country's population is also expected to rise markedly, according to the United Nations. Today's population is 150m, but by 2050 this should come in at around 350m
- In alcohol, the country has a large 'informal' sector
- Beer is the biggest alcohol category in Nigeria. The overall beer market has been declining since 2010, but the value segment is growing
- The country is the largest market for Guinness in the world. It overtook the brand's home market of Ireland in Diageo's fiscal 2012
- Per capita consumption of both beer and spirits is low – Beer = 11 litres, spirits = 0.3 litres. Around 80% of total alcohol consumption hails from the south of the country
- Diageo has two companies in Nigeria: Guinness Nigeria Plc (54.3%-owned by Diageo, 45.7% by other investors) and Diageo Brands Nigeria Ltd (sole owner). Guinness Nigeria operates in beer, malt and RTD, Diageo Nigeria covers premium and super-premium spirits. The two companies have separate sales divisions but a combined back-office set-up
- Diageo believes it is the only total beverage alcohol company in Nigeria. Heineken, SABMiller, Moet Hennessy and Distell are the other main international operators in the country
- The company has three production sites, in Lagos, Benin and Aba
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