How Nigerians Spent Over N420 Billion On Beverages in 6 Months

By Tolulope Oke

According to data obtained from the financial statements of some of the beverage-making companies listed on the Nigerian Exchange Limited (NGX), Nigerians have spent over $1 billion (N420 billion) on beverages in six months.

The beverages from both alcoholic and non-alcoholic companies which are the Nigerian Breweries, Guinness, and International Breweries, all claimed double-digit revenue increases as Nigerians drank their goods despite a decline in purchasing power and skyrocketing inflation. As Nigerians drank more chocolate beverages, non-alcoholic beverage producers including Nestle, Cadbury, and Friesland Campina also reported similar revenue gains.

Nairametrics explained that the total income earned from beverages alone for the companies under evaluation, according to an analysis of their statistics, was N763.9 billion, up from N587.5 billion recorded a year earlier.

“The 28.5% growth in beverage revenue over the last one year indicates how strong demand still is for beverages despite cost pressures arising from taxes and price increases.

“At N593.2 billion for the first half of the year alone, the companies are on track to top a trillion in beverage sales this year alone.

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This result excludes over a dozen larger beverage makers who are not quoted on the Nigerian Exchange.
This suggests the actual revenue in the first half of this year will be much higher when added to the revenue generated by the 5 beverage giants.”

Nigerians appear to spend the majority of their money on beer in the first half of the year, generating N483.1 billion in total sales for Nigeria Breweries, Guinness, and International Breweries, as opposed to N379.2 billion for the same period in 2021.

Additionally, Nestle reported a notable increase in beverage sales, going from N70.2 billion to N90 billion. The milk product manufacturer Friesland Campina saw a rise in sales from N125.7 billion to N170.7 billion in the first half of the year.