Cider/Perry in Nigeria

PROSPECTS

Cider/perry benefits from novelty appeal

Cider/perry only began to register significant volume sales in Nigeria in 2012, when Distell Group Ltd launched the Savanna Dry and Hunter's Extra Dry Cider brands in the country. However, with the exception of 2016, when it was negatively affected by the economic downturn, the category performed well over the review period.

Competition from spirit-based RTDs limits development potential

Despite a generally positive outlook, over the forecast period the development of cider/perry in Nigeria will continue to be limited by competition from spirit-based RTDs. This category has a similar positioning to cider/perry, in that it mainly offers sweeter fruit-flavoured products.

On-trade cider/perry consumption set to continue rising

Prior to 2015, cider/perry volume sales were heavily concentrated in off-trade channels. This was because Distell Group focused its distribution efforts on modern grocery retailers outlets in order to catch the attention of middle- and higher-income consumers.

COMPETITIVE LANDSCAPE

Distell Group maintains its commanding lead

Distell Group continued to dominate cider/perry in Nigeria in 2017 thanks to its first mover advantage and wide distribution of its Savanna and Hunter’s brands, particularly via rapidly developing modern grocery retailers channels. Nonetheless, the company has faced increased competition in the category since 2015, when Nigerian Breweries launched its heavily advertised and widely distributed Strongbow brand.

Strongbow is the best performing brand

Second ranked Nigerian Breweries was the best performing company in cider/perry in terms of total volume sales growth in 2017 thanks to the success of its Strongbow brand. This brand is well advertised, including at points of sale, and distribution is focused on on-trade channels, where it competes with spirit-based RTDs products.

Prospects for perry brands are positive

Perry brands accounted for a very small share of total cider/perry volume sales in Nigeria in 2017. Whereas cider brands generally compete in the mid-priced segment, perry brands such as Chaumet Demi Sec typically have a premium positioning.

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