Minor Project Report

MS 114, MBA II Semester

THE STUDY OF PRODUCTION AND CONSUMPTION OF NIGERIA

BEVERAGE INDUSTRY

Internal Guide: Submitted By:

Submitted To:

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 Particulars Page
Number
Declaration 3
Bonafide Certificate 4
Acknowledgement 5
Chapter 1 Introduction 6-9
Introduction of the Topic
Objective and Scope of Project Report
Chapter 2 Literature Review 10-15

Chapter 3 Industry Overview 16-31

About the Industry

Product/Services Offered
Geographic Area
Recent Trend and Innovations
Govt. Regulations
SWOT Analysis
Chapter 4 Research Methodology

Chapter 5 Findings and Conclusion

Finding of the Study

Conclusion of the Study

Chapter 6 Bibliography and Annexure
Bibliography
Annexure

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 DECLARATION
I hereby declare that this Minor Project Report titled “The study of production and
consumption of Nigeria beverage industry” submitted by me to Banarsidas Chandiwala
Institute of Professional Studies,

Dwarka is a bonafide work undertaken during the period from by

me and has not been submitted to any other University or Institution for the award of any

degree diploma / certificate or published any time before.

(Signature of the Student)

Name:

Enrollment No.:

Date:

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 BONAFIDE CERTIFICATE

This is to certify that as per best of my belief the project entitled “The study of

Production and consumption of Nigeria Beverage Industry” is the bonafide

research work carried out by student of MBA, BCIPS, Dwarka, New Delhi, in

partial fulfillment of the requirements for the Minor Project Report of the Degree

of Master of Business Administration. He / She has worked under my guidance.

Signature Project Guide:

Mrs.
Date:

Counter signed by

HOD:

ACKNOWLEDGEMENT

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 It is in particular that I am acknowledging my sincere feeling towards my mentors
who graciously gave me their time and expertise.

They have provided me with the valuable guidance, sustained efforts and friendly
approach. It would have been difficult to achieve the results in such a short span of time
without their help.

I deem it my duty to record my gratitude towards the project supervisors who devoted
their precious time to interact, guide and gave me the right approach to accomplish the
task and also helped me to enhance my knowledge and understanding of the project.

Signature

Name:
Enrollment No.:
Course:
Semester:

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 CHAPTER 1

INTRODUCTION OF THE TOPIC

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 Introduction of the Topic

A drink or beverage is a kind of liquid which is specifically prepared for human consumption. The word
beverage usually refers to drinkable liquids which are not purely water. Some beverages are consumed for
their food value (e.g., milk), yet others are consumed for their thirst quenching properties, for their
stimulating effects, or simply because consumption is pleasurable. There are many groups for beverage. It
can be divided into various groups such as alcoholic, non-alcoholic beverage, soft drinks, fruit or vegetable
juices and hot drinks. Despite the water content in all beverages, water itself is not usually considered a
beverage. Alcoholic Beverage An alcoholic beverage is a drink that contains ethanol, commonly known as
alcohol for example beer Non-alcoholic Beverage A non-alcoholic beverage is one that contains little or no
alcohol. This category includes low-alcohol beer, non-alcoholic wine, and apple cider if they contain less
than 0.5% alcohol by volume. Carbonated Beverage Carbonated beverages are generally sweetened,
flavored, acidified, colored, artificially carbonated and chemically preserved. Non-Carbonated Beverage
Non-carbonated beverages are sweetened, flavored, acidified, colored, chemically preserved but are not
artificially carbonated. Soft drink Soft drink is the name commonly given to a nonalcoholic beverage that is
consumed cooled or chilled, as opposed to a hot beverage, like tea or coffee. A soft drink is a beverage that
typically contains water, a sweetener, and usually a flavoring agent. A soft drink may also contain caffeine,
fruit juice, or both. Milk, hot chocolate, tea, coffee, milkshakes, and tap water are not considered to be soft
drinks. Soft drinks are called "soft" in contrast to "hard drinks" (alcoholic beverages). Small amounts of
alcohol may be present in a soft drink, but the alcohol content must be less than 0.5% of the total volume if
the drink is to be considered non-alcoholic. Widely sold soft drinks in Pakistan are Amrat Cola, Frost,
Gourmet Cola, Big Apple, Lemonade, Fruit-a-Vitals, Mirinda, Shezan Juice, Tops Juices, Malt (Orange,
Lemon, Peach). Soft drinks fall into several categories distinguished by the industry as carbonates, still
drinks, juices, dilutables, and bottled waters. A carbonate, also called a carbonated soft drink (CSD), is a
fizzy drink containing gaseous carbon dioxide, commonly called soda pop in the U.S. Still drinks are
noncarbonated soft drinks, and they consist of a plethora of varieties, such as fruit drinks, energy and sports
drinks, and health beverages Bottled waters have become very popular, whether still or carbonated, flavored
or non-flavored, with or without natural sugars. Usually, these are prepared from natural spring waters or
from other subterranean water sources and have high mineral contents, either naturally or added during
manufacture. Dilutables is the name given to concentrated syrups, squashes, and cordials that are
reconstituted with water by consumers to prepare beverages in ready to-drink (RTD) forms. Fruit juice Juice
is a liquid that is naturally contained in fruit and vegetables. It is commonly consumed as a beverage or used
as an ingredient or flavoring in foods. Juice is prepared by mechanically squeezing or macerating fruit or
vegetables flesh without the application of heat or solvents. For example, orange juice is the liquid extract of
the fruit of the orange, and tomato juice is the liquid that results from pressing the fruit of the tomato.
Different types of vegetables can be used to make vegetable juice such as carrots, tomatoes and many more.
Some vegetable juices are mixed with some fruit juice to taste better. Nectars Nectars are a type of non-
carbonated soft drink made by muddling the flesh of fruits. The term "fruit juice" is restricted to beverages
that are 100% pure juice, whereas a "nectar" may be diluted (to a degree limited by regulations) with water

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and contain additives besides fruit juice, including natural and artificial sweeteners, and preservatives. Juices
and nectars are beverages made mainly from natural fruit juices, the content of which is prescribed by local
food law regulations. Roughly speaking, juices contain pure, 100% juice, whereas nectars have around 50%
natural juice content. Juices may or may not be sweetened, but nectars are always sweetened to make up for
the non-juice portion of the beverage. Hot drinks A hot drink is any beverage which is normally served
heated, by the addition of a heated liquid, such as water or milk, or by directly heating the drink itself.
Examples: Coffee-based beverages and tea-based beverages Miscellaneous Some substances may be defined
as either food or drink, and accordingly may be eaten with a spoon or drunk, depending upon their thickness
and solutes. For example Buttermilk and Soup.

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 1.2 The Objective of the Beverage

● To act as a catalyst to enable the non-alcoholic beverage industry to play an increasingly significant role
in the growth of the national economy.
● To act as an interface between the industry, on the one hand, and Governments, Regulatory institutions
and similar bodies, on the other, apart from interacting with other apex Chambers in the formulation of
policies and rules that facilitate the non-alcoholic beverage industry to play a useful and constructive role,
keeping safety of consumers as a primary objective.
● To facilitate the framing, development and dissemination of best practices related to environment, quality,
manufacture, and other relevant areas, for continuing to make available to the consumers safe and healthy
non-alcoholic beverages.
● Providing a common platform to share and exchange knowledge and information including with regard to
Industry best practices connected with non-alcoholic beverage Industry.

1.3 Scope of Beverage

Beverages are essential for growth, development as well for carrying out various physiological processes
that are critical for living a healthy life.

�        In adult individuals 70 percent of body weight, 73 percent of lean muscle, 25 percent of adipose
tissues, 22 percent of bone and 80 percent of blood consists of water. Consumption of beverages
help in maintaining the water content in body and prevent dehydration
�        The water assists in digestion, assimilation and excretion of foods. It also helps in removing the
toxic substances produced in body as a result of metabolisms such as urea, uric acid, ammonia etc.
through kidney.
�        Water in beverages help in regulating the temperature of body through the process of sweating.
�        Beverages specially the fruit and vegetable based ones are source of micronutrients (vitamins
and minerals) and anti-oxidants (carotenoids, flavonoids).
�        Certain beverages like tea and coffee contain alkaloids which stimulate the central nervous
system.
�        Consumption of alcoholic beverages specially wine is recommended for its heart healthy image
due to the presence of flavonoids.
�        Fermented dairy beverages are consumed because of the beneficial microflora present in them
which assist in restoration and improvement of gastro-intestinal health.

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 CHAPTER 2

LITERATURE REVIEW

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 Teng-Zhen Ma, Faisal Eudes Sam and Bo Zhang (2022)

Non-alcoholic wine (NW) has attracted the interest of winemakers and

researchers in recent years, mainly due to the increasing market share of NW
(≤ 1% alcohol by volume), the health risks associated with the consumption of
wine, the global trend toward healthier lifestyles, and the uncompromising
cardioprotective effects of NW. NW can be produced using several methods,
particularly, dealcoholization of wines, which is mainly achieved by physical
dealcoholization methods. However, the dealcoholization of wine has two
major drawbacks. The first drawback is legal since the laws vary according to
each country. The second disadvantage is technical since it is difficult to
dealcoholize a wine while maintaining its original organoleptic
characteristics. Both the aromatic qualities (volatile composition) and taste
(sensory characteristics) of the dealcoholized wine (DW) tend to worsen the
greater the decrease in its alcoholic strength. This makes the resulting wine
have a different flavor and aroma. Improvement of the aroma of DW after
dealcoholization could help wine producers limit undesirable effects and
increase consumer acceptance. This chapter is focused on the popular
techniques used in wine dealcoholization, their impact on the phenolic
composition, volatile composition, sensory characteristics, and the state-
of-the-art methods of improving the aroma profile of DW.

Nikitha Modupalli, Lavanya Devraj, Venkatachalapathy Natarajan (2022)

Flavor is an important concept in the sensory acceptance and consumer decision process. The specific
sensation of flavor from each food is because of the characteristic chemical compounds in that particular food
product. Though the flavor is a combination of aroma and tastes sensory perceptions, it has been established
that the flavor and aroma of food substrates are correlated, autonomous of the taste perception. The chemical
compounds in food substances act as chemical triggers to stimulate the aroma and flavor receptors in buccal
cavity. Plant extracts are rich carriers of the aromatic and phenolic compounds that impart the characteristic
flavor to specific foods. Along with being the carriers of flavor-rich compounds, plant extracts also serve as
antioxidant, antimicrobial, and can exert therapeutic properties. The plant extracts serving as flavor
components in food systems have gained much importance in recent days due to increased consumer demand.

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 Lilian Daniel Kaale & Christian Brayson Tarimo (2021)

Alcoholic beverages are produced in many parts of the world for different purposes, including refreshment
and people’s cultural and religious practices. The advancement in their production technology has evolved
over time due to a number of factors, including the availability of modern equipment, innovation, operating
costs, and customer competition. In Africa, particularly Tanzania, different types of traditional beverages are
produced. These beverages have been recognized for their contribution to households’ economy, especially in
rural and semi-urban areas. However, limited strategic measures have been implemented to realize their
potential in local and international markets. Among the major concerns under this category is the source and
management of fermentation cultures in use, which affect the quality, safety, consistency, and shelf life of the
final products. Fermentation is the basis of almost all alcoholic beverages. It involves the use of fermenting
cultures containing a mixture of microorganisms, often yeast, lactic acid bacteria, and molds. The sources of
these traditional fermenting cultures are mainly a fermented porridge of cereals and banana juice, a portion of
a previous brew, or dried yeast harvested from a previous brew. This review discusses the potential of the use
of culture yeast in adding value to traditional alcoholic beverages, especially in terms of quality and shelf life.
Yeast selection, yeast management, waste yeast management, and the role of quality assurance in yeast
management are covered.

Carlos MULLER Luis Eduardo NEVES Luciana GOMESMunique

GUIMARÃESGrace GHESTI (2020)

Since the invention of beer by the Sumerian people in 5000 BC, alcohol was the main reason of the interest of
consumers on beer. Only in the beginning of the 20th century alcohol-free beer was demanded and since then
technology has advanced dramatically in the production of those beverages. The aim on alcohol-free beer
production is to have products that taste similarly to their alcoholic equivalents, the sole absence of alcohol
and low concentrations of esters and higher alcohols and the higher concentration of aldehydes create a
“worthy” organoleptic impression of those products. Alcohol-free beers can be obtained by the restriction of
alcohol formation during fermentation, the use of special yeast strains that consume or don’t produce alcohol,
the thermal removal of alcohol and by the removal of alcohol trough membrane processes. Membrane
separated alcohol-free beers preserve more of the natural constituents of beer aroma and those products
usually taste better than those obtained through other processes. Pervaporation techniques show a broad
spectrum of use and can even be combined with other processes and perform the removal of undesired
products or separation and recuperation of aromatic substances.

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Liana Claudia Salanță ,ORCID,Teodora Emilia Coldea ,*ORCID,Maria Valentina
Ignat ,Carmen Rodica Pop ORCID,Maria Tofană ,Elena Mudura ORCID,Andrei Borșa
ORCID,Antonella Pasqualone ORCID and Haifeng Zhao (2020)

Beer is the most consumed alcoholic beverage in the world and the third most popular beverage after water
and tea. Emerging health-oriented lifestyle trends, demographics, stricter legislation, religious prohibitions,
and consumers’ preferences have led to a strong and steady growth of interest for non-alcoholic beers
(NABs), low-alcohol beers (LABs), as well for craft beers (CBs). Conventional beer, as the worlds most
consumed alcoholic beverage, recently gained more recognition also due to its potential functionality
associated with the high content of phenolic antioxidants and low ethanol content. The increasing attention of
consumers to health-issues linked to alcohol abuse urges breweries to expand the assortment of conventional
beers through novel drinks concepts. The production of these beers employs several techniques that vary in
performance, efficiency, and usability. Involved production technologies have been reviewed and evaluated
in this paper in terms of efficiency and production costs, given the possibility that craft brewers might want to
adapt them and finally introduce novel non-alcoholic drinks in the market.

Ronald S. Jackson (2019)

Categorization is a human trait, most obvious in our use of language. Regrettably, wine classification is
totally pragmatic, unrelated to the origin of wine styles or grape varieties. Many styles have arisen
independently in different locations and at widely divergent times. Also many grape varieties are grown
successfully under conditions markedly different from those under which they first became famous. Thus,
wines are grouped on simplistic features that only partially give clues as to their sensory attributes—such as
color, carbon dioxide or alcohol content, geographical or varietal origin, or style. Only the latter is of clear
benefit to the consumer in choosing wines.

S. Sohrabvandi, S.M. Mousavi & S.H. Razavi (2015)

Beer is a universally popular beverage, consumed worldwide. Recently, the beer market is witnessing a
significant increase in the consumption of low- and non-alcoholic beer. This is mainly due to health reasons,
safety reasons in the workplace or on the roads, and strict social regulations. Also, there are countries where
alcohol consumption is completely forbidden by law. Consumers in such conditions are willing to consume
products as close as possible to the conventional types, from a sensory point of view (especially flavor
characteristics). However, non-alcoholic beer suffers from artificial and dull flavor as well as improper body
and foaming properties. Therefore, production of alcohol-free beer with satisfactory organoleptic

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characteristics that can be compared with conventional beers has recently given rise to increased
technological and economic interest. In this article, methods of production of alcohol-free beer (and to some
extent, low-alcohol beer), its sensory characteristics as well as its health-related aspects are reviewed.

Argyrios Tsakiris, Stamatina Kallithraka, Yiannis Kourkoutas (2013)

Grape brandy is a spirit drink produced by wine distillation and is matured in wooden casks. According to
legislation, it can be characterized by the geographical area where the grapes were produced, the grape
variety used and the selected distillation and ageing techniques. Distillation increases ethanol concentration
and aromatic constituents which are already present in grapes or are developed during fermentation and
distillation. During maturation in wooden casks, compounds that contribute to the aroma and taste are
extracted from the wood. Hence the spirit acquires the desired softer mouth feel, aromatic complexity and
overall quality. Different methods of analysis are used in order to pursuit this process by analyzing volatile
and non-volatile substances and correlate composition with quality. Analysis can also be useful in
identification of brandy safety, potential adulterations, provenance and differentiation from other spirits
drinks. © 2013 Society of Chemical Industry.

Tomáš Brányik a, Daniel P. Silva b, Martin Baszczyňski a, Radek Lehnert a, João

B. Almeida e Silva c (2011)

The increasing interest of consumers in health and alcohol abuse issues motivates breweries to expand the
assortment of products with low alcohol content. The goal of producing beers with low alcohol content can
be achieved by two main strategies; namely by gentle removal of alcohol from regular beer and by limited
ethanol formation during the beer fermentation. Within these two basic strategies, there are a number of
techniques that vary in performance, efficiency and usability. This paper presents an overview and
comparison of these techniques and provides an evaluation of sensorial properties of low-alcohol and an
alcohol-free beer produced as well as suggests possibilities for their additional improvement.

Charles D. H. Parry (2010)

To contribute to this understanding by reviewing four specific policy development initiatives that have taken
place in South Africa between 1994 and 2009: restrictions on alcohol advertising and counter-advertising,
regulation of retail sales of alcohol, alcohol taxation and controls on alcohol packaging.

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 Thomas F. Babor (2008)

 The alcohol beverage industry has been expanding its corporate social responsibility
and other business activities in sub-Saharan Africa. The aim of this paper is to
evaluate the effects of these activities on the physical, economic, psychological and
social availability of alcohol in the region.

Y Kourkoutas, A Bekatorou, I.M Banat, R Marchant, A.A Koutinas (2004)

Various supports and immobilization techniques have been proposed and tested for application in wine-
making, cider-making, brewing, distillates, potable alcohol and novel beverages production. Immobilization
applications suitable for use by these alcohol-related industries are described together with an evaluation of
their potential future impact, which is also highlighted and assessed. Topics in process engineering
including immobilized cell bioreactor configurations and the scale-up potential of the various immobilization
supports and techniques are also discussed. 

Jacek Moskalewicz, Jussi Simpura (2002)

Three periods are distinguished and applied to describe the dynamics of changes in the system of supply of
alcoholic beverages in Central and Eastern Europe since 1980. The distinction of these three periods is based
on changes in the regulation of the supply. The period of the old regulation ended in most countries around
the 1990s. A deregulation took place in the early 1990s. The first steps toward a reregulation were visible in
attempts to create a new order in the alcohol market in the last years of the 1990s. The analysis builds mainly
on developments in Poland and Russia, with more scattered information from other countries. In each period
the role of different actors (the state, the enterprises, organized crime, civil organizations and individuals),
different interests (economic development, state finances, political order, public order, public health and
various symbolic interests) and different public measures to regulate the supply (licensing, taxation and
preventive actions and treatment) are considered. The analysis shows how the state lost its dominant position
to private firms and is slowly regaining it again, how interest in state finances, overall economic development
and later in profit-making dominate all three periods, and how the old system of regulations was ruined, to
become rebuilt in very small steps with many conflicts and complications. Public health interests and also

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civil society interests were weak in comparison with economic interests. From the public health perspective,
changes in the supply system have had significant consequences, but a more comprehensive regulation of
supply does not necessarily lead to diminished alcohol-related harm.

CHAPTER 3
–
INDUSTRY OVERVIEW

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 3.1 About the Industry

Alcohol consumption in Africa is high and is thriving strongly. As per World Health Organization’s (WHO)
‘Global Status Report on Alcohol and Health’, Nigeria is estimated to have highest annual alcohol
consumption in Africa. An average Nigerian consumes about 12.28 litres of alcohol per annum.

Definition / Scope

Alcohol consumption in Africa is high and is thriving strongly. As per World Health Organization’s (WHO)
‘Global Status Report on Alcohol and Health’, Nigeria is estimated to have highest annual alcohol
consumption in Africa. An average Nigerian consumes about 12.28 litres of alcohol per annum.

Market Overview

● The alcoholic drink market of Nigeria is one of the striving industry of Nigerian manufacturing sector,
despite being at the maturity stage of its life cycle.
● Increase in disposable income and urbanization support demand for alcoholic beverages in Nigerian market.
There has been expansion of drinking occasions which further fuels the demand.

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● Nigerian Breweries and Guinness Nigeria are two major players of the market. Both these leading breweries
together hold close to 90% of market share. SABMiller entry in the market has further intensified the
competition, whose strategic aim is to provide affordable alcoholic beverage to Nigerian consumers

Top Market Opportunities

● Beer consumption in Nigeria has been experiencing growth of 9 per cent annually over the last 10 years.
This growth was as a result of foreign investments in new production plants, rising disposable income,
and changing consumption patterns.
● Major players definitely find the industry attractive in terms of profitability, specifically due to
impressive growth and economies of scale.  However fringe players struggle owing to heavy capital
investments, it also becomes major entry barrier in the market.
● Beer consumption in Nigeria increases with a growth in social activity; and the middle class, major
consumers of beer, is growing
● There is a growing awareness among Nigerians to become health conscious and are ready to accepted
branded/ imported products which are healthier then home brewed alcoholic beverages.
● Consumers’ high discretionary income and ability to spend on the more expensive alcoholic beverages.

Market Drivers

● With the largest population in Africa and growing middle class along with large number of drinking –
age consumer present significant growth opportunities.
● Nigeria’s rising middle class and the emerging young consumers are adopting consumption patterns similar to
Western countries and are increasingly developing preferences for premium imported brands
● The country’s increasing urbanization and the rising number of female alcohol drinkers, especially in the
large cities, such as Lagos, Port Harcourt, and Abuja also offers expansion opportunities.
● These favorable market scenarios lured various multinationals to strengthen their foothold in Nigeria.
● Nigeria‘s favorable demographics, with a populous and vibrant youth and growing middle class are also
contributing growth factors.
● Beer dominates on volume share basis, while spirits and wine are more important in monetary terms.
● The marketing communication by some alcohol beverages brands portrays these drinks as vitality enhancing
beverage, thus attracting increasing number of youth to consume them.
● In Nigeria, there are not very stringent policies or measures regarding production and marketing of alcohol.
‘Self-regulatory’ or drink responsibly is common theme which brewers use in their campaign.
● Some of the alcoholic beverages are now liked with affluence and class/ status symbol. Increase in
purchasing power and aspirational spending habits have generated the demand for premium drinks.
● Nigerian wine market is currently dominated by importers like Ekulo Wine World which accounts for
30% market share.
● To promote business recently Nigeria International wine and spirit fair has been started where importers,
distributors & customers can meet.

Market Restraints

● Increasing spirituality and abstinence as many Nigeria’s religious organizations continue to discourage
alcohol consumption.
● Current brands enjoy high brand equity, which any new entrant would have to surmount.

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● Nigeria’s wine market is burgeoning, but crippling import duties and complex bureaucracy could dampen the
boom before it gets started

Other Key Market Trends

Alcohol drinking was earlier reserved for special occasions and it was mainly consumed by male adult of the
family. Women and Youths were culturally restrained from drinking.

In recent year, alcohol consumption in Nigeria has witnessed striking changes led by development of socio-
political and economic structure of country. Consumption is no longer exclusively ruled by customs and
traditions or for special gatherings/ occasions.

There is no inhibition among youth now with regards to alcohol consumption, who were earlier restricted
by social norms. This trend seems to have contributed significantly in becoming Nigeria among
30 countries with highest per capita of alcohol globally.

Another trend worth noting is increasing consumption of alcohol among females.  This change could be
attributed to influence of globalization and upsurge of feminism in the county.

Market Size and Forecast

Beer: Beer consumption is estimated to be about 19.5 million hl (2012 estimate) and is growing at about 9%
per annum. Beer turnover in Nigeria is growing faster than its economy. The country has the second largest
beer market in Africa, after South Africa. It constitutes about 96% of all alcoholic sales.

Spirit: Spirit’s market comprises of whiskey, brandy and vodka, the market is valued at $2.84 billion
according to an International Wine and Spirit Research (IWSR) report. It is estimated to be growing at about
7% year-on-year. Premium spirit segment which occupies about 5-10% of alcoholic beverages market is
growing at much faster pace with an annual growth of 18-20%. Imported brands account for $500 million of
the spirits market.

Wine: The wine market is currently valued at approximately $370 million and is expected to grow 6% a year.
Red wine accounts for 74% of the sales. There is a robust appetite for premium and high-end
South African wines in Nigeria. According to an estimate that 5.2m people, representing the top 10% of
earners among the 156m population, account for 43% of wine consumption in the country.

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 Competitive Landscape

● Nigeria’s 160 million strong population offer a large market for alcoholic beverages. The alcoholic
drink market of Nigeria is worth more than $6.5 billion. In terms of consumption pattern, beer is the most
popular alcoholic drink in the country followed by spirit and wine.
● Beer approximately constitutes about 55% share in Nigerian market, spirit and wine share is 30% and 15%
respectively.

Key Market Players

Heineken: The brand holds about 71% market share through its two subsidiaries, Nigerian Breweries Plc (NB
Plc) with 61% market share and Consolidated Breweries with a 10% market share. Nigerian Breweries has
largest capacity in the country; it is estimated to have total annual capacity of 13.5mn hl. Through its lager
brands Star, Gulder, Gulder Max and Heineken, Nigerian Breweries controls almost two thirds of the
lager market in Nigeria.

Diageo: It occupies 27% market share through stake in Guinness Nigeria. Guinness has an annual capacity of
7.5mn hl.

SABMiller: It is a relatively newer entrant in the market and has forayed in market through acquisition of two
local breweries.  The brand has been working towards cultivating a significant stake in industry and has
toughens the competition. South African Breweries Miller capacity is estimated to be around 1.8mn hl per
annum.

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3.2 Products/ Services Offered

Here are few alcoholic drinks out of so many on the list of alcoholic drinks in Nigeria:

1. Guinness Stout

Guinness Stout tops my list of alcoholic drinks in Nigeria. That’s what I’m going to start with.
Guinness is an alcoholic drink manufactured by Guinness – a high profile company which started
operations in Nigeria in 1962.

Most Nigerians especially aged ones love this alcoholic drink because the drink is beneficial to the human heart.
Yes, cholesterol finds it hard to accumulate in the body.

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The foamy cream found in the Guinness drink is caused by Nitrogen with less acidity and this drink is the most
alcoholic beer with 7.2% abv on my list of alcoholic drinks in Nigeria.

2. Heineken Beer

Another powerful and classy drink on my list of alcoholic drinks in Nigeria is Heineken Beer. The Green
bottle and red star drink have 5% alcohol content.

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 3. Trophy Beer

Trophy beer is crafted and brewed in Nigeria and it has the title – Honorable. On my list alcoholic drinks in
Nigeria, Trophy Beer is the most widely consumed beer in the western part of Nigeria and it is highly used
on occasions.

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The alcoholic brand was founded by Dr. Lawrence Omole in 1971 and commenced production in December
1978. The Trophy beer with 5% abv alcohol content is also referred to as ‘the pride of west’

4. Goldberg Beer

Another beer on my list of alcoholic drinks in Nigeria is Goldberg – a premium quality lager beer. It is a beer
rich in quality, smooth in taste, and cleanly stored in a colorful metallic bottle.

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Goldberg filled in 60cl bottle and 50cl can SKUs is a distinctive flavor fermented to a matured refreshing
taste made from 100% barley malt, hops and pure water which fit in for any occasions and best when chilled.

5. Star Larger Beer

Hmm, shine-shine bobor! Just shine on. Also on my list of alcoholic drinks in Nigeria is Star Larger beer – a
branded drink which was introduced into Nigeria market in 1949.

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The white bubbling foam drink has 5.10% abv alcohol content and its smoothness is a slightly medium
bitterness you get from the drink. This alone has made the customers asking for more.

The 100% grain, get a shining green 600ml bottle size and 33cl can which has a blue label. Star Lager beer is
used everywhere in Nigeria for all sort of celebrations.

6. Harp Beer

Harp Beer was first produced in Nigeria by Guinness Plc in the year 1974 and it is made with natural
ingredients and has 5.15% alcohol content.

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It is available in 60cl bottle and 33cl can. It is filtered for a crispy smooth and distinctive taste for any social
function.

7. Gulder Lager Beer

On my list of alcoholic drinks in Nigeria, I have Gulder Lager Beer. This beer has its own uniqueness and
it is the first Nigerian beer sold in brown bottle and label.

I seriously can’t count the number of times I’ve seen the Gulder Ultimate Bottle, most especially on the
Gulder Ultimate Search TV Show. Gulder was introduced in 1970.

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Gulder Lager Beer is brewed in Nigeria in 600ml bottle containing 5.25% ABV alcohol content. The bottle
with gold neck foil and bold shoulder embossment, associated with the boldness of character with metallic
body label is made for strong men.

This drink is loved by Nigerians because of its crisp and distinctive taste made from hops, is one of top beers
in Nigeria.

3.3 Geographic Area

Nigeria’s alcoholic beverage sector is an increasingly lucrative industry, with market research forecasting
annual consumption growth of over 6% through 2022. This is slightly up on the 5% annual growth
experienced between 2014 and 2016 which brought average consumption to 25.5 litres, according to the
World Health Organization. National Bureau of Statistics (NBS) figures show Nigerians spent $570 million
on alcohol that year, and the sector was widely noted to have been immune from the effects of the recession
in 2015-16.
NBS data reveals that the southern region of the country consumes the highest amount of alcohol with a
combined spending of $431 million, accounting for approximately 75% of consumption. The remaining 25%
is split between the North Central, North East and North West areas of the country, with lower consumption

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rates due to strong Islamic influences in these regions. Given the size of the market, a number of global
majors operate subsidiaries in Nigeria, and local production accounts for 80% of consumption. Market data
indicates that beer is the most widely consumed alcoholic beverage with a 55% market share, followed by
spirits (30%) and wine (15%). Several local drinks are also present in the market, including palm wine, which
is fermented from the sap of palm tree, and burukutu, which is brewed from wheat.

Asoko has mapped 25 of the sector’s leading alcoholic beverages players highlighting producing, marketing
and packaging companies. Of these, 80% are privately owned while 20% are publicly listed companies with
one unlisted public limited company.
In line with the global concentration of the beer market, only 4 of the companies mapped are brewers,
representing the subsidiaries of the three global players active in the market. By contrast, the spirits segment
is much more fragmented, with 12 companies active exclusively in this space and another seven producing
spirits alongside either wine or beer. The remaining two mapped companies are wine makers. Just over half
of the companies mapped also produce non-alcoholic beverages.
In terms of geographic spread, 76% of the companies are in the western part of the country with ten
companies in Ogun state and 9 in Lagos state. The remaining companies are split between Akwa Ibom,
Anambra, Abia and Imo State.
The countries covered in the alcoholic beverages market report are U.S., Canada, Mexico in North America,
Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey,
Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia,
Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC),
Brazil, Argentina, Rest of South America as a part of South America, UAE, Saudi Arabia, Oman, Qatar,
Kuwait, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).

North America dominates the alcoholic beverages market owing to the increasing young–adult population in
this region. Furthermore, the rising consumption of high-quality alcoholic beverages will further boost the
market growth in this region.

3.4 Recent Trends and Innovations

Global Alcoholic beverages Market, By Product Type (Beer, Wine, Spirits, Others), Alcoholic Content
(High, Medium, Low), Flavor (Unflavored, Flavored), Category (Mass, Premium), Packaging (Plastic
Bottles, Glass Bottles, Tins), Distribution Channel (Modern Trade, Convenience Stores, Specialty Stores,
Online Retailers, Hotels/Restaurants/Bars, Commercial Stores, On Premises, Liquor Stores, Grocery Shops,
Internet Retailing, Supermarkets) – Industry Trends and Forecast to 2030.

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Alcoholic Beverages Market Analysis and Size
The global alcoholic beverages market is increasing rapidly because of the growing youth population,
increasing middle-class income, and a strong economy. The increasing consumer demand for new variants, in
the case of alcoholic beverages, has generated a revolution in craft beer formulation. Hence, to cater to the
upsurge in market demand, the manufacture of craft beer in different regional and global breweries has
augmented significantly. Furthermore, increasing knowledge of the negative effects of low alcohol
consumption among consumers leads to a rise in demand for high and primary alcoholic beverages. Producers
of high-performance, high-quality alcoholic beverages are experiencing massive commercial growth.

Data Bridge Market Research analyses that the alcoholic beverages market is expected to reach USD
1,978.69 billion by 2030, which was USD 1,561.99 billion in 2022, registering a CAGR of 3.00% during the
forecast period of 2023 to 2030. In addition to the insights on market scenarios such as market value, growth
rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge
Market Research also include in-depth expert analysis, geographically represented company-wise production
and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and
deficit analysis of supply chain and demand.     

Recent Development

● In 2022, Diageo announced acquiring Balcones Distilling, often known as "Balcones." Balcones Distilling
is among the leading American Single Malt Whisky producers in the United States. Balcones hold Texas'
intense heat and temperature fluctuations to make whiskies with differentiated flavors.
● In 2022, Bacardi introduced an Indian-made whiskey called Legacy. Bacardi intends to produce a discount
valuing category for its consumers through Legacy further to strengthen its position and expansion plan in
India.

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● In 2022, Constellation Brands Inc., a leading beverage alcohol company, entered a brand authorization
contract with The Coca-Cola Company in the United States. This agreement will bring the FRESCA brand
into the alcoholic beverages category.

3.5 Government Regulation

Objective: Alcohol labeling raises consumers' awareness of a product's composition and the risks associated
with alcohol consumption. We identified mandatory elements and health warnings in alcohol regulations in
Nigeria and evaluated selected product labels on alcoholic beverages produced in Nigeria to determine their
compliance with the requirements.

Method: A descriptive case study was used. Labeling requirements were extracted from two alcohol
regulations and one related document retrieved from the website of the National Agency for Food and Drug
Administration and Control (NAFDAC). The information on the product labels of 59 selected beers and spirit
drinks produced in Nigeria was assessed based on six mandatory elements: list of ingredients, allergens,
nutritional information, percentage of alcohol by volume (ABV), "drink responsibly" statement, and age
restrictions. Five health warnings were also assessed: standard drinks per container, drinking guidelines, link
to an alcohol education website, a "drinking during pregnancy" logo/text, and drink driving logo/text.

Results: Different regulations exist for beer and spirit drinks in Nigeria. Health warnings are not mandatory
on labels of alcoholic beverages. No single product label included all six mandatory elements. Four
mandatory elements--list of ingredients, ABV, drink responsibly statement, and age restrictions--were present
on 61% of the product labels examined.

Conclusions: The alcohol labeling regulations in Nigeria fall short of the World Health Organization labeling
recommendations. The alcohol industry does not fully comply with labeling requirements in Nigeria.
Enhanced labeling inclusive of health warnings should be mandatory as a strategy to create awareness of
alcohol-related risks while monitoring industry-labeling practices to ensure compliance.

3.6 SWOT Analysis

Strengths:-

● The Multi-nationals have a better understanding of the market, proven to be essential growth.
● Multi-nationals can use their marketing skills to give longevity to tried and tested new products.

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 ● Multi-nationals have extensive resources which reduce the relative cost and risk of new product
development.
● Established brand names can be used to grant legitimacy to new emerging markets.

Weakness:-
● Excessive alcohol consumption is linked to short-term and long-term health risks.
● Fashions change very quickly and can be hard to predict.
● Public disorder.

Opportunities:-
● The products are appealing in terms of taste and brand image.
● The majority of new drinkers are young adolescents who can easily be reached by marketing
strategies.
● Alcohol has dependence producing properties.
● Drinking alcohol is a defining trend for modern youth culture.
● Young people are receptive to fashionable product innovations.
● The drinking habits of older people are often shaped by their experiences and habits.

Threats:-
● PR threat.
● Potential political intervention to increase controls on alcohol marketing.
● Influence from organizations concerned with alcohol abuse and addiction.
● Sales of cheap smuggled alcohol.

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 Chapter 4
–
Research Methodology

Data collection and base year analysis are done using data collection modules with large sample sizes. The
stage includes obtaining market information or related data through various sources and strategies. It includes
examining and planning all the data acquired from the past in advance. It likewise envelops the examination
of information inconsistencies seen across different information sources. The market data is analyzed and
estimated using market statistical and coherent models. Also, market share analysis and key trend analysis are
the major success factors in the market report. To know more, please request an analyst call or drop down
your inquiry.

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The key research methodology used by DBMR research team is data triangulation which involves data
mining, analysis of the impact of data variables on the market and primary (industry expert) validation. Data
models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide,
Company Positioning Grid, Patent Analysis, Pricing Analysis, Company Market Share Analysis, Standards of
Measurement, Global versus Regional and Vendor Share Analysis. To know more about the research
methodology, drop in an inquiry to speak to our industry experts.

● At what growth rate will the market be projected to grow during the forecast period of 2003 to 2030?

The Alcoholic Beverages Market is projected to grow at a CAGR of 3.0% during the forecast period by 2030.

● What will be the market value in the future?

The future market value of the Alcoholic Beverages Market is expected to reach USD 1,978.69 billion by
2030.

● Who are the major players operating in the market?

The major players in the Alcoholic Beverages Market are Halewood International Limited (U.K.), Davide
Campari-Milano N.V. (Netherlands), Diageo (U.K.), ASAHI GROUP HOLDINGS, LTD. (Japan), Accolade
Wines (Australia), Bacardi (Bermuda), Mike's Hard Lemonade Co. (U.S.), etc.

● Which data countries are covered in the report?

The countries covered in the Alcoholic Beverages Market are U.S., Canada, Mexico in North America,
Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey,
Russia, Rest of Europe in Europe, Japan, etc.

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 Chapter 5 – Findings and Conclusion

Findings of the Nigeria Alcohol Industry:-

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Despite the increase in alcohol marketing activities by the transnational alcohol corporations in Nigeria, little
research has focused on their impact on young people’s drinking behaviours. Using empirical data from in-
depth interviews with 31, 19 to 23-year olds from a Nigerian university, this study explores students’
awareness of promotional activities on and around campus and the extent to which sales promotion
influences their alcohol consumption. The data were analyzed to generate themes with the aid of NVivo
software. Sales promotion is common on campus and around students’ off-campus residential and leisure
sites. Students’ awareness of, and exposure to promotional activities were high, to the extent that they
identified the sales promotion strategies that are particular to students’ environments, the specific alcohol
companies that use each strategy and the particular bars where promotions are held. Whilst sales promotions
offering free alcohol and price discounts influenced men to buy and consume larger quantities of alcohol
than they had intended, the actions of sales personnel also engendered impulse purchasing and the
consumption of more potent brands. The women were also influenced by sales staff to consume more
alcohol than originally planned, although their main motivation for participating in sales promotions was to
win ‘giveaways’ such as cars, electronic gadgets and other branded paraphernalia. The findings indicate that
while effective monitoring of alcohol promotions and related marketing strategies should be reinforced, the
government may also give serious consideration to more evidence-based regulatory measures rather than
relying on marketing self-regulations.

Conclusions

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Nigeria has few alcohol-related policies with weak multi-sectoral action. Funding constraint remains a major
threat to the implementation and enforcement of proposed policy actions.

There is presently no stand-alone, comprehensive policy to regulate the harmful use of alcohol. Low multi-
sectoral action characterizes the alcohol-related policies formulated by the health and non-health sectors.
Overdependence on donor funding and poor government budgetary allocation are major barriers to alcohol
control in Nigeria.
Recommendations: The policy actions on alcohol prevention and control in the existing NCD policies should
be reviewed and updated by the NCD committee in line with global recommendations proposed by World
Health Organization (2010) global strategy to reduce the harmful use of alcohol with emphasis on best buy
interventions using MSA. Besides, legal acts should be formulated and ratified to regulate the activities of
the alcohol industries.

6. Bibliography & Annexure

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Bibliography:-

http://www.naijawinelovers.com/list-of-alcoholic-drinks-in-nigeria-14-popular-nigerian-drinks/

https://www.reogma.com/expert-views/alcoholic-beverages-industry-in-nigeria/

https://scholar.google.co.in/scholar?
q=alcoholic+beverages+literature+review&hl=en&as_sdt=0&as_vis=1&oi=scholart

https://www.asokoinsight.com/content/market-insights/nigeria-alcoholic-beverages

https://www.databridgemarketresearch.com/reports/global-alcoholic-beverages-market

https://pubmed.ncbi.nlm.nih.gov/33573723/

https://scholar.google.co.in/scholar?
hl=en&as_sdt=0,5&as_vis=1&q=recent+trends+and+innovations+in+nigerian+alcohol+industry

https://onlinelibrary.wiley.com/doi/abs/10.1002/jsfa.6377

https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1360-0443.2010.03003.x

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