Alcoholic Drinks in Cameroon
Euromonitor International's Alcoholic Drinks in Cameroon market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 94 | Publication date: Jun 2006
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Executive summary
New VAT and excise duties negatively affects overall market growth
Alcoholic drinks enjoyed strong demand over the review period 2000 and 2005, although demand has dwindled in 2005. One-half percentage point increase in the Value-Added Tax (VAT) alongside increases in excise duties that occurred with the introduction of a new finance law in January 2005, underpinned by high transaction costs have rendered alcoholic drinks much more expensive in Cameroon. Furthermore, a wave of inflation that followed the rise in VAT, unaccompanied by salary adjustment measures, resulted in a decline in consumer purchasing power.
Worse still, the deficient state of transport infrastructure in Cameroon coupled with unreliable electricity power supply and a generally high transaction cost environment, have added more than 15% to breweries’ production cost. Against the backdrop of increasing average cost of production, and declining consumer purchasing power, demand for alcoholic drinks has been declining in volume sales since 2005 by 15%.
In spite of the overall market decline in 2005, some sectors notably, FABs and Cider/Perry witnessed strong positive volume and value growth, while beer suffered the worst decline. In line with conventional wisdom, value grew faster than volume in both off-trade and on-trade distribution channels with the only exception witnessed in the FABs and Cider/Perry markets during the early years of their introduction into the Cameroonian market.
Beer remains the major type of alcohol consumed
In spite of the declining demand, beer remains easily the most consumed alcoholic drink in the country occupying well over 95% of the total volume of alcoholic drinks sold in 2005 and prospects are that this trend in alcohol consumption will continue over the forecast period 2005-2010. Lager by price platform comes ahead of all other beer categories preferred by Cameroonian consumers with over 80% of the total beer volume market in 2005.
Good performance throughout the review
Whilst the over-all spirits market has performed very well in both volume and value terms over the review period, notable strong growth has been recorded in the Cognac, Whisk(e)y, Tequila (and Mezcal) and Other Spirits sub-sectors.
Cider/Perry and FABs entered the market only in 2002 and 2001 respectively and, have witnessed the strongest growth over the review period with 66% 214% growth in volume terms respectively. In an alcohol market largely dominated by male lager beer consumers, cider/perry and FABs is appealing more to the youths and female segments of the population. Wine saw steady growth during the review period, with red wine enjoying the strongest growth. Although per capita wine consumption stands at around 0.6 litres in 2005, with increasing concerns about health and prospects for economic recovery, there is scope for further growth during the forecast period.
A positive future outlook
The outlook for alcoholic drinks is very positive, with one of the main factors behind anticipated growth being the projected growth in per capita incomes coming at the backdrop of Cameroon reaching the completion point in mid-2006, of the Highly Indebted Poor Country (HIPC) Initiative; a precursor to further debt relief from the international lending community. As a result of this, the government will have a wider budgetary margin of manoeuvre which could translate into lesser taxes and greater investments in infrastructure and public goods with accompanying increases in personal disposable incomes and company profits.
Furthermore, Cameroon is currently working in hand with her neighbours in the Central African sub-region to put in place a Central African Economic and Monetary Union known by the French acronym ‘CEMAC’. When fully operational, it will likely improve intra-regional trade and boost demand for Cameroonian products in a sub-regional market that is 60% dominated by Cameroon.
As is to expected, projected growth in per capita incomes will stimulate more on-trade consumption patterns as well as increased premiumisation, the result of which will be faster growth for both on-trade and off-trade values over volumes.
Domestic concerns
The alcoholic drinks market in Cameroon is not without cause for concern. Due to the heavy incidence of taxation, most breweries have resorted to declaring annual production volumes that are a little lower than actual shipments and also paradoxically declaring company sales volumes that are somewhat higher than actual volumes sold in a bit to claiming a larger than real market share.
The effect of high custom duties has been to promote a high black market favoured by illegal importations of both wines and spirits from neighbouring Nigeria. Furthermore, the absence of a viable legal framework for protection of intellectual property rights has rendered counterfeit activities very profitable especially in the whisk(e)y market. In spite of government efforts at fighting contraband drinks, its consumption remains an ongoing problem.
The major problem with laws in Cameroon is with their implementation. For instance, there is a law prohibiting the sale of alcohol drinks within a periphery of 200 metres to an educational establishment and also to anyone under the age of 21. Ironically, off-trade distribution centres such as off-licences can be found located within the vicinity of schools and having as principal clients, students and pupils below 21 years and often dressed in school uniforms.
The advertisement law on alcoholic drinks seems to have no clear restrictions as youths can be seen on TV advertising beer and advertisement posters can be seen on every street corner and even on walls of educational establishments. As a consequence, the consumption level of alcohol is rapidly increasing among younger consumers and particularly among female teenagers. Also, the law prohibiting driving after drinking has never really made any culprits in spite of the high incidence of road accidents caused by drink driving. Against all of these concerns, government’s resolve in redressing them remains questionable.
Table of contents
ALCOHOLIC DRINKS IN CAMEROON : MARKET INSIGHT
1. EXECUTIVE SUMMARY
2. OPERATING ENVIRONMENT
2.1 Consumer Expenditure on Alcoholic Drinks
2.2 Taxation and Duty Levies
Table 1 Taxation and Duty Levies on Alcoholic Drinks 2005
2.3 Legislation
2.4 Contraband/Parallel Trade
3. ALCOHOLIC DRINKS
3.1 Market Performance
Table 2 Sales of Alcoholic Drinks by Sector: Total Volume 2000-2005
Table 3 Sales of Alcoholic Drinks by Sector: Total Value 2000-2005
Table 4 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2000-2005
Table 5 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2000-2005
3.2 Leading Company Profile – Guinness Cameroon SA
Summary 1 Guinness Cameroon S.A. Operational Indicators 2005
Summary 2 Guinness Cameroon S.A Production Statistics 2003
3.3 Leading Company Profile – Brasseries du Cameroun SA
Summary 3 S.A.B.C: Production Statistics 1994
3.4 Distribution
Table 6 On-trade vs Off-trade Sales of Alcoholic Drinks by Sector: Volume 2005
Table 7 On-trade vs Off-trade Sales of Alcoholic Drinks by Sector: Value 2005
Table 8 On-trade vs Off-trade Sales of Alcoholic Drinks by Sector: % Volume 2005
Table 9 On-trade vs Off-trade Sales of Alcoholic Drinks by Sector: % Value 2005
Table 10 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2005
3.5 Forecast Market Performance
Table 11 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2005-2010
Table 12 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2005-2010
Table 13 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2005-2010
Table 14 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2005-2010
4. BEER
Table 15 Sales of Beer by Subsector: Total Volume 2000-2005
Table 16 Sales of Beer by Subsector: Total Value 2000-2005
Table 17 Sales of Beer by Subsector: % Total Volume Growth 2000-2005
Table 18 Sales of Beer by Subsector: % Total Value Growth 2000-2005
Table 19 Company Shares of Beer by National Brand Owner 2000-2004
Table 20 Company Shares of Beer by Global Brand Owner 2000-2004
Table 21 Brand Shares of Beer 2001-2004
Table 22 Forecast Sales of Beer by Subsector: Total Volume 2005-2010
Table 23 Forecast Sales of Beer by Subsector: Total Value 2005-2010
Table 24 Forecast Sales of Beer by Subsector: % Total Volume Growth 2005-2010
Table 25 Forecast Sales of Beer by Subsector: % Total Value Growth 2005-2010
Table 26 On-trade vs Off-trade Sales of Beer: Volume 2000-2005
Table 27 On-trade vs Off-trade Sales of Beer: Value 2000-2005
Table 28 On-trade vs Off-trade Sales of Beer: % Volume Growth 2000-2005
Table 29 On-trade vs Off-trade Sales of Beer: % Value Growth 2000-2005
Table 30 Off-trade Sales of Beer by Distribution Format: % Analysis 2000/2005
5. WINE
Table 31 Sales of Wine by Subsector: Total Volume 2000-2005
Table 32 Sales of Wine by Subsector: Total Value 2000-2005
Table 33 Sales of Wine by Subsector: % Total Volume Growth 2000-2005
Table 34 Sales of Wine by Subsector: % Total Value Growth 2000-2005
Table 35 Forecast Sales of Wine by Subsector: Total Volume 2005-2010
Table 36 Forecast Sales of Wine by Subsector: Total Value 2005-2010
Table 37 Forecast Sales of Wine by Subsector: % Total Volume Growth 2005-2010
Table 38 Forecast Sales of Wine by Subsector: % Total Value Growth 2005-2010
Table 39 On-trade vs Off-trade Sales of Wine: Volume 2000-2005
Table 40 On-trade vs Off-trade Sales of Wine: Value 2000-2005
Table 41 On-trade vs Off-trade Sales of Wine: % Volume Growth 2000-2005
Table 42 On-trade vs Off-trade Sales of Wine: % Value Growth 2000-2005
Table 43 Off-trade Sales of Wine by Distribution Format: % Analysis 2000/2005
6. SPIRITS
Table 44 Sales of Spirits by Subsector: Total Volume 2000-2005
Table 45 Sales of Spirits by Subsector: Total Value 2000-2005
Table 46 Sales of Spirits by Subsector: % Total Volume Growth 2000-2005
Table 47 Sales of Spirits by Subsector: % Total Value Growth 2000-2005
Table 48 Company Shares of Spirits by National Brand Owner 2000-2004
Table 49 Company Shares of Spirits by Global Brand Owner 2000-2004
Table 50 Brand Shares of Spirits 2001-2004
Table 51 Forecast Sales of Spirits by Subsector: Total Volume 2005-2010
Table 52 Forecast Sales of Spirits by Subsector: Total Value 2005-2010
Table 53 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2005-2010
Table 54 Forecast Sales of Spirits by Subsector: % Total Value Growth 2005-2010
Table 55 On-trade vs Off-trade Sales of Spirits: Volume 2000-2005
Table 56 On-trade vs Off-trade Sales of Spirits: Value 2000-2005
Table 57 On-trade vs Off-trade Sales of Spirits: % Volume Growth 2000-2005
Table 58 On-trade vs Off-trade Sales of Spirits: % Value Growth 2000-2005
Table 59 Off-trade Sales of Spirits by Distribution Format: % Analysis 2000/2005
7. CIDER/PERRY
Table 60 Sales of Cider/Perry: Total Volume 2000-2005
Table 61 Sales of Cider/Perry: Total Value 2000-2005
Table 62 Sales of Cider/Perry: % Total Volume Growth 2000-2005
Table 63 Sales of Cider/Perry: % Total Value Growth 2000-2005
Table 64 Company Shares of Cider/Perry by National Brand Owner 2000-2004
Table 65 Company Shares of Cider/Perry by Global Brand Owner 2000-2004
Table 66 Brand Shares of Cider/Perry 2001-2004
Table 67 Forecast Sales of Cider/Perry: Total Volume 2005-2010
Table 68 Forecast Sales of Cider/Perry: Total Value 2005-2010
Table 69 Forecast Sales of Cider/Perry: % Total Volume Growth 2005-2010
Table 70 Forecast Sales of Cider/Perry: % Total Value Growth 2005-2010
Table 71 On-trade vs Off-trade Sales of Cider/Perry: Volume 2000-2005
Table 72 On-trade vs Off-trade Sales of Cider/Perry: Value 2000-2005
Table 73 On-trade vs Off-trade Sales of Cider/Perry: % Volume Growth 2000-2005
Table 74 On-trade vs Off-trade Sales of Cider/Perry: % Value Growth 2000-2005
Table 75 Off-trade Sales of Cider/Perry by Distribution Format: % Analysis 2000/2005
8. FABS
Table 76 Sales of FABs by Subsector: Total Volume 2000-2005
Table 77 Sales of FABs by Subsector: Total Value 2000-2005
Table 78 Sales of FABs by Subsector: % Total Volume Growth 2000-2005
Table 79 Sales of FABs by Subsector: % Total Value Growth 2000-2005
Table 80 Company Shares of FABs by National Brand Owner 2000-2004
Table 81 Company Shares of FABs by Global Brand Owner 2000-2004
Table 82 Brand Shares of FABs 2001-2004
Table 83 Forecast Sales of FABs by Subsector: Total Volume 2005-2010
Table 84 Forecast Sales of FABs by Subsector: Total Value 2005-2010
Table 85 Forecast Sales of FABs by Subsector: % Total Volume Growth 2005-2010
Table 86 Forecast Sales of FABs by Subsector: % Total Value Growth 2005-2010
Table 87 On-trade vs Off-trade Sales of FABs: Volume 2000-2005
Table 88 On-trade vs Off-trade Sales of FABs: Value 2000-2005
Table 89 On-trade vs Off-trade Sales of FABs: % Volume Growth 2000-2005
Table 90 On-trade vs Off-trade Sales of FABs: % Value Growth 2000-2005
Table 91 Off-trade Sales of FABs by Distribution Format: % Analysis 2000/2005
9. DEFINITIONS