Wine in Nigeria

PROSPECTS

Urbanisation and rising incomes will continue to benefit wine

Wine in Nigeria is expected to perform well over the forecast period thanks to favourable socioeconomic trends such as rising urbanisation, the expansion of the middle class and growth in the number of people in formal or professional employment, especially women. The category should also benefit from economic recovery, as people with higher incomes are more likely to consume wine.

Trading up likely to resume as economic conditions improve

Amidst unfavourable economic conditions, wine witnessed a strong trend towards trading down over 2015-2017. For example, consumers switched from expensive champagne brands like Moët & Chandon to more affordable options such as André, and from Carlo Rossi to the cheaper Baron Romero brand in still red wine.

Outlook for still red wine remains bright

Still red wine, by far the largest wine category in total volume sales terms in 2017, is expected to perform strongly over the forecast period. Still red wine products are generally cheaper than white varieties, and many consumers are first introduced to wine through affordable and widely available red wine brands such as Don Simon, Baron de Romero and Baron de Valls.

COMPETITIVE LANDSCAPE

Ekulo Group leads wine in 2017

Ekulo Group continued to lead wine in total volume sales terms in 2017. The company, Nigeria’s leading wine importer, distributes popular brands such as Baron Romero, Baron de Valls, B&G Cuvee Speciale, Don Simon, Escudo Rojo, Moët & Chandon, Dom Pérignon and Pink Lady.

International brands remain dominant

International brands dominated total wine volume sales in Nigeria in 2017. Some local importers hold franchises for the distribution of international brands, while others have no connection to producers and import such brands indirectly.

Mid-priced brands lose ground to economy products

While mid-priced brands such as Carlo Rossi have historically accounted for a large share of total wine volume sales in Nigeria, towards the end of the review period they lost ground as more consumers moved to economy brands. Economy brands continued to perform strongly in 2017 due to their competitive price positioning as compared to standard and premium alternatives.

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