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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