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Although we see tremendous growth potential across food and drink sector in industries such as food processing, soft drinks, beer and organised food retailing, the direct consequences of food price and fuel inflation have weighed on consumers thus far in 2012. In food and fast-moving consumer goods, firms such as Nestlé and Unilever are leading the way. With incomes going up and more people able to afford Nestlé’s and Unilever’s brands, there is a lot of room for growth; in reality, only the surface of this potential has been scratched.
Headline Industry Data (local currency)
2012 per capita food consumption = +9.9%; forecast compound annual growth to 2016 = +11.0%
2012 beer volume sales = +6.5%; forecast compound annual growth to 2016 = +7.8%
2012 mass grocery retail sales = +28.9%; forecast compound annual growth to 2016 = +33.6%
Key Industry Trends & Developments
SABMiller Making Push: Multinational beverages firm SABMiller has built a fantastic beer business across Africa and has a very strong presence across the continent. The firm established a base via South African Breweries, which grew into one of the world’s largest beer companies, and then expanded into the East African Community region and throughout Francophone Africa (in partnership with Castel). SABMiller has spread its wings far and wide as demand for commercial beer has grown.
Huge Potential On Offer: Flour Mills of Nigeria (FMON), which has ambitions of becoming the world’s largest flour milling company, has announced plans to invest NGN100bn (US$600mn) over a five-year period as it looks to ramp up capacity. The idea is to leverage off Nigeria’s fast-growing economy and young population (in excess of 160mn) that, combined, provide outstanding long-term opportunities for consumer goods companies, particularly those that are already well established and able to take on ambitious investment programmes.
Although we see tremendous growth potential across food and drink sector in industries such as food processing, soft drinks, beer and organised food retailing, the direct consequences of food price and fuel inflation have weighed on consumers thus far in 2012. In food and fast-moving consumer goods, firms such as Nestlé and Unilever are leading the way. With incomes going up and more people able to afford Nestlé’s and Unilever’s brands, there is a lot of room for growth; in reality, only the surface of this potential has been scratched.
Headline Industry Data (local currency)
2012 per capita food consumption = +9.9%; forecast compound annual growth to 2016 = +11.0%
2012 beer volume sales = +6.5%; forecast compound annual growth to 2016 = +7.8%
2012 mass grocery retail sales = +28.9%; forecast compound annual growth to 2016 = +33.6%
Key Industry Trends & Developments
SABMiller Making Push: Multinational beverages firm SABMiller has built a fantastic beer business across Africa and has a very strong presence across the continent. The firm established a base via South African Breweries, which grew into one of the world’s largest beer companies, and then expanded into the East African Community region and throughout Francophone Africa (in partnership with Castel). SABMiller has spread its wings far and wide as demand for commercial beer has grown.
Huge Potential On Offer: Flour Mills of Nigeria (FMON), which has ambitions of becoming the world’s largest flour milling company, has announced plans to invest NGN100bn (US$600mn) over a five-year period as it looks to ramp up capacity. The idea is to leverage off Nigeria’s fast-growing economy and young population (in excess of 160mn) that, combined, provide outstanding long-term opportunities for consumer goods companies, particularly those that are already well established and able to take on ambitious investment programmes.
BMI Industry View
SWOT Analysis
Nigeria Food Industry SWOT
Nigeria Drink Industry SWOT
Nigeria Mass Grocery Retail Industry SWOT
Business Environment
BMI’s Core Global Industry Views
Table: Core Views
Sub-Saharan Africa Food & Drink Ratings
Table: Risk/Reward Sub-Factor Ratings Q412 (scores out of 10)
Table: Sub-Saharan Africa Food & Drink Risk/Reward Ratings Q412
Macroeconomic Outlook
Table: Economic Activity, 2011-2016
Industry Forecast Scenario
Food
Food Consumption
Table: Food Consumption – Historical Data & Forecasts, 2009-2016
Table: Preserved Fish, 2009-2016
Table: Biscuits, 2009-2016
Drink
Alcoholic Drinks
Beer
Table: Beer Value/Volume Sales – Historical Data & Forecasts, 2009-2016
Soft Drinks
Carbonates
Table: Carbonates Value/Volume Sales – Historical Data & Forecasts, 2009-2016
Bottled Water
Table: Bottled Water Value/Volume Sales – Historical Data & Forecasts, 2009-2016
Mass Grocery Retail
Table: Mass Grocery Retail Sales By Format – Historical Data & Forecasts, 2009-2016
Trade
Table: Trade Indicators – Historic Data & Forecasts, 2009-2016
Food
Key Industry Trends And Developments
Flour Mills Of Nigeria To Invest US$600mn
Nestle Going Strong
Olam Targeting Final Consumer In US$67mn Kayass Deal
Yum! Brands Targeting Africa Growth
Lots Of Growth Room For Unilever In Africa
Olam Biscuit Acquisition Complements Its Diversification Push
Market Overview
Food Production
Agriculture
Drink
Key Industry Trends And Developments
SABMiller Making Push
Diageo To Pump More Money Into Fast-Growing Guinness
Heineken Looking To Grow Capacity
Market Overview
Beer
Soft Drinks
Mass Grocery Retail
Key Industry Trends And Developments
Spar To Collaborate Directly With Farmers To Serve Farm-Fresh Produce
MGR Investment Finally Coming In
Market Overview
Competitive Landscape
Consumer Share Price Analysis
Key Players
Table: Key Players In Nigeria’s Food & Drink Sector
Table: Key Players In Nigeria’s Mass Grocery Retail Sector
Company Monitor
Food
Nestle Nigeria
UAC Plc
Drink
Guinness Nigeria
Nigerian Breweries
Mass Grocery Retail
Park ‘n’ Shop
Country Snapshot
Table: Population By Age Group, 1990-2020 (‘000)
Table: Population By Age Group, 1990-2020 (% of total)
Table: Key Population Ratios, 1990-2020
Table: Rural And Urban Population, 1990-2020
Risk/Reward Ratings Methodology
Table: Rewards
Table: Risks
Weighting
Table: Weighting
BMI Food & Drink Industry Glossary
Food & Drink
Mass Grocery Retail
BMI Food & Drink Forecasting & Sourcing
How We Generate Our Industry Forecasts
Sourcing
SWOT Analysis
Nigeria Food Industry SWOT
Nigeria Drink Industry SWOT
Nigeria Mass Grocery Retail Industry SWOT
Business Environment
BMI’s Core Global Industry Views
Table: Core Views
Sub-Saharan Africa Food & Drink Ratings
Table: Risk/Reward Sub-Factor Ratings Q412 (scores out of 10)
Table: Sub-Saharan Africa Food & Drink Risk/Reward Ratings Q412
Macroeconomic Outlook
Table: Economic Activity, 2011-2016
Industry Forecast Scenario
Food
Food Consumption
Table: Food Consumption – Historical Data & Forecasts, 2009-2016
Table: Preserved Fish, 2009-2016
Table: Biscuits, 2009-2016
Drink
Alcoholic Drinks
Beer
Table: Beer Value/Volume Sales – Historical Data & Forecasts, 2009-2016
Soft Drinks
Carbonates
Table: Carbonates Value/Volume Sales – Historical Data & Forecasts, 2009-2016
Bottled Water
Table: Bottled Water Value/Volume Sales – Historical Data & Forecasts, 2009-2016
Mass Grocery Retail
Table: Mass Grocery Retail Sales By Format – Historical Data & Forecasts, 2009-2016
Trade
Table: Trade Indicators – Historic Data & Forecasts, 2009-2016
Food
Key Industry Trends And Developments
Flour Mills Of Nigeria To Invest US$600mn
Nestle Going Strong
Olam Targeting Final Consumer In US$67mn Kayass Deal
Yum! Brands Targeting Africa Growth
Lots Of Growth Room For Unilever In Africa
Olam Biscuit Acquisition Complements Its Diversification Push
Market Overview
Food Production
Agriculture
Drink
Key Industry Trends And Developments
SABMiller Making Push
Diageo To Pump More Money Into Fast-Growing Guinness
Heineken Looking To Grow Capacity
Market Overview
Beer
Soft Drinks
Mass Grocery Retail
Key Industry Trends And Developments
Spar To Collaborate Directly With Farmers To Serve Farm-Fresh Produce
MGR Investment Finally Coming In
Market Overview
Competitive Landscape
Consumer Share Price Analysis
Key Players
Table: Key Players In Nigeria’s Food & Drink Sector
Table: Key Players In Nigeria’s Mass Grocery Retail Sector
Company Monitor
Food
Nestle Nigeria
UAC Plc
Drink
Guinness Nigeria
Nigerian Breweries
Mass Grocery Retail
Park ‘n’ Shop
Country Snapshot
Table: Population By Age Group, 1990-2020 (‘000)
Table: Population By Age Group, 1990-2020 (% of total)
Table: Key Population Ratios, 1990-2020
Table: Rural And Urban Population, 1990-2020
Risk/Reward Ratings Methodology
Table: Rewards
Table: Risks
Weighting
Table: Weighting
BMI Food & Drink Industry Glossary
Food & Drink
Mass Grocery Retail
BMI Food & Drink Forecasting & Sourcing
How We Generate Our Industry Forecasts
Sourcing
