Beer drinkers downgrade to cheap brands as economic woes bite

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She scampered into the empty hall with a scowl on her face. Madam Elizabeth Johnson has every reason to be unhappy as her beer parlor has been as calm as a grave yard since last year.

The 51 year old seller said she struggles to sell a cartoon a day and she has asked her staff to leave since their wage bills was becoming an unbearable liability.

Six years ago, her joint was so busy that one would have to squeeze himself to pass through and the spacious bar was so full that white plastic chairs had to be arranged outside for thirsty customers to sit and drink.

“ l feel sad watching my business crumble before me. Times are hard and a lot my customers have lost their jobs while the traders are complaining of slow business activities,” said Johnson.

It is not surprising that Madam Elizabeth knows when workers salaries are paid. This is because the Maya man (a popular name for lovers of alcohol) can be chatty under the intoxication of liquor, and where more than two, three, and four meet every day, there exist a fellowship.

One beer to rule them all, one beer to find them, one beer to bring them all and in the darkness they shall find themselves.

Madam Johnson is one out of thousands of beer parlous operators hit by low patronage as consumer spending continues to dwindle, forcing many Nigerians to switch to affordable alternatives like local sachet  alcoholic drinks.

The local alcoholic producers are Intercontinental Distillers Limited, IDL, makers of Eagle Schnapps, Chelsea Dry Gin, Action Bitters, and Bull London Dry Gin, Grand Oak Limited, marketers of the Lord’s Dry Gin and Regal Dry Gin, Euro Foods and Distillers Limited, producers of Sabrina.    

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Beer accounts for 12% of total liquid consumption in Nigeria, juice 3% – Research

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Share of beer drink in the overall liquid consumption in Nigeria is 12 percent as at 2017, a report by Tetra Pak West Africa has revealed. Global average of beer consumption of total liquid market is 10 percent. This means that more beer is consumed in Nigeria.

According to the report quoted by Chi Limited, the share of juice consumption in Nigeria out of total liquid market is only 3 percent. The global average is 9 percent. This also explains that less juice drink is consumed in Nigeria.

The low percentage of juice consumption in Nigeria is informed by fear of sugar content, weak category differentiation and price value. In the era of eating and living healthy, there is pervading misconception about some healthy juice drinks without sugar, says Ademola Mafikuyomi, Chivita Brand Manager. For instance, he said Chivita 100% does not contain any sugar or preservative but only pure fruit juice which is good for any class of consumers.

The report also showed that Nigerians drink more carbonated soft drink with 21 percent of the liquid market. The global percentage of CSD is 11 percent. Dairy  share of the food drink market  is 21 percent in Nigeria.

Water, with 41 percent of the liquid market has top share. This also explains that Nigerians drink more water. Global percentage of water consumption is 20 percent. Wine and spirit share is one percent of the liquid drinking market in Nigeria.

Juice could enjoy more percentage of the drinking market if education on, especially no-sugar content is mounted by juice producers to demystify perceptions and regulatory controls are strengthened to ensure that manufacturers live up to their claims.

Chivita controls more than 50percent of the juice market since it became a major driver of the sector Read More...