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01 June, 2022



Brewing news Africa: Heineken’s Asian beer Tiger becomes Africa’s fastest-growing brand

Tiger, the leading international premium brand in Asia, has become the fastest-growing beer brand in Africa’s largest economy, almost doubling sales volume last year, CNBC Africa reported on May 31.

Tiger is one of the brands helping Heineken, the world’s second-largest beer maker, penetrate the most populous country on the African continent, which has about 200 million people, most of whom are under 30 years of age.

‘‘Tiger continued its successful roll-out in Nigeria, making it the third biggest Tiger market globally and the biggest outside the Asia Pacific region,” Roland Pirmez, President Africa, Middle East, and Europe, said.

Driven by the increasing adoption of Tiger, the volume of the company’s premium brands jumped 30% in Nigeria, supported by strong growth in Heineken and the successful launch of the Desperados brand in the country.

An increase in digital penetration in Nigeria due to faster internet speeds and smartphone usage is helping boost the sales of Tiger and other Heineken brands in the West African nation. Heineken’s digital business drive accounted for 75% of net revenues in 2021.

Sales on the company’s digital platform worldwide grew by 130% in 2021 to 2.8 billion euros and are on track to hit 10 billion euros in 2025, it said in a statement. The platform is now operational in 30 markets including Brazil, Italy, France, Cambodia, and Egypt as well as in Nigeria where it helped drive sales.

While Nigeria and other African countries may have lower disposable income relative to others, they represent a sizable population that is growing fast, making them a big opportunity for beer in the long term.

‘’The Nigerian beer market remains attractive given its high growth potential and an improving macroeconomic environment,’’ Pirmez said.

It is not only in Nigeria that the Heineken brand is seeing a surge in sales. Across the continent, sales have rebounded strongly from the pandemic induced slowdown in 2020 “stronger and faster than predicted.” Nigeria recovered strongly from its worst recession in four decades, with the economy growing by 4% driven by a rebound in consumer demand and the non-oil sector in Africa’s largest economy just like many African economies did after the 2020 slowdown.

“Overall 2021 saw total volume exceeding 2019 levels driven by the performance in many markets across the region, especially Nigeria and the Democratic Republic of Congo’’, Pirmez said. International and local premium brands witnessed strong performances in Nigeria, South Africa, Russia, Ivory Coast, and Rwanda, Heineken said.

This is why Heineken is pouring more investment into the continent, an indication of its growing confidence that Africa represents the next growth frontier. The average age on the continent is below 25 years, and the average beer per capita consumption is just around 22 litres, compared with an average of around 78 litres in developing markets. That gives a lot of headroom for expansion capacity, which Heineken is already doing.

Nigeria benefited from the 1.8 billion euros spent on expanding capacity in five countries in 2021, including Brazil, Vietnam, Italy, and Australia. Heineken commissioned the first solar photovoltaic plant to power the Ibadan Brewery plant in Nigeria, which will supply about 800 MWh to the brewery annually, reducing its carbon footprint on the continent by 10,000 tonnes.

The beer maker is also investing in other parts of the continent to take advantage of the growing population, investing over $250 million into the continent in 2021. It unveiled a $100 million brewery in Mozambique, an $11 million brewery in Congo, and a $119.5 million factory near Addis Ababa in Ethiopia. And the Dutch brewer is using pop culture, driven by music, film, social media and sports, to enlist a generation not afraid to be authentic.





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