Rtds/High-Strength Premixes in Nigeria

PROSPECTS

Stable volume growth projected for the forecast period

While total RTDs/high-strength premixes volume sales fell slightly in 2017, this was nonetheless a marked improvement on the dramatic decline recorded in 2016. Aside from economic recession, the category’s strongly negative performance in 2016 was due to a steep drop in demand for leading brand Orijin.

Category poised to benefit from rising incomes among young adults

The further development of Nigeria’s nightlife culture should also drive demand in RTDs/high-strength premixes over the forecast period, especially as economic conditions improve and disposable incomes among young adults rise. Such products are a popular choice among young adults when socialising at parties or in nightclubs, bars etc.

Spirit-based RTDs set to remain dominant

Spirit-based RTDs is expected to remain the dominant category within RTDs/high-strength premixes over the forecast period. Due to its maturity, the category looks set to show slightly slower growth in total volume sales than high-strength premixes and wine-based RTDs.

COMPETITIVE LANDSCAPE

Guinness Nigeria continues to dominate RTDs/high-strength premixes

Guinness Nigeria continued to dominate RTDs/high-strength premixes in 2017 thanks to the combined strength of its Orijin, Smirnoff Ice and Snapp brands. An extensive distribution network and a strong capacity for innovation and marketing activities also contributed to the company’s dominant position.

Nigerian Breweries is the strongest performer

Nigerian Breweries was the best performing company in RTDs/high-strength premixes in terms of total volume sales growth in 2017. The company’s volume share in the category increased rapidly over the latter years of the review period thanks to its successful launch of products such as Ace Roots, Ace Rhythm Vodka, Ace Passion Apple Spark and Ace Desire.

Nigerian Breweries launches Ace Desire

Nigerian Breweries also led new product development in RTDs/high-strength premixes in 2017, launching Ace Desire Zobo Flavour. This innovative product incorporates the flavour of the hibiscus plant (called “zobo” in Nigeria), which is used in a locally popular non-alcoholic drink that is considered to be healthy, refreshing and tasty.

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