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Coca-Cola may join the Nigerian “beer war” soon

Fikayo Owoeye by Fikayo Owoeye
May 30, 2018
in Business News, Company News
Coca-Cola may join the Nigerian “beer war” soon
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Coca-Cola has finally launched its first ever alcoholic drink in Japan. The new canned drink is brewed with Sochu, a spirit drink indigenous to Japan.

The company is making entry into an already competitive alcohol drink market, where major Japanese companies such as Suntory, Kirin, and Asahi dominate the market. The 350ml-canned drink contains three, five and seven percent alcohol. They will be available in the southern Kyushu region of Japan.

Though the company has labeled the drink an experiment, it could decide to scale it up if it is successful. Recall that Nairametrics had earlier reported plans by the company to extend its portfolio to juice production and other drinks aimed at boosting its revenue base.

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Stiff Competition for market share

In Nigeria, the company’s largest African market, where its core products such as Coke, Fanta, and Sprite have had tough competition from other producers such as Big Cola, and Pepsi.

In its Full-year 2017 Integrated Annual Reports, sales volume across its regions grew by 2.2% in 2017, however, Nigeria’s sales volume fell behind and further impacted on the company baseline. Strong competition from other mid-size drinks has made revenue growth difficult for the company.

Coca-Cola may be considering launching its alcoholic drink in the region as a way to shore up its revenue base.

In Nigeria, the beer companies already have a booming market with a stiff competition among major players in which many have tagged a beer war.

Recently, Nigerian Breweries launched a new brand Tiger Beer into the Nigerian Market the brand which is already present in other parts of the world, notably Singapore, South Africa, India, Thailand and the United States.

AB InBev through International Breweries also recently launched Castle Lite beer. It also launched Budweiser into the country weeks earlier. The company by mid-year will launch a brewery plant in Shagamu, Ogun-State which would enable it to penetrate parts of the South West where it had hitherto been absent.

The Coca-Cola Company is headquartered in Atlanta, Georgia, but incorporated in Wilmington, Delaware is an American multinational beverage corporation, and manufacturer, retailer, and marketer of nonalcoholic beverage concentrates and syrups.


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Tags: Coca-Cola NigeriaNigerian Breweries
Fikayo Owoeye

Fikayo Owoeye

Fikayo has a degree in computer science with economics from Obafemi Awolowo University. ITIL v3 in IT service management. An alumnus of Daystar Leadership Academy. Prior to joining Nairametrics had stinct in Project management, Telecommunications among others. Also training in Consulting and Investment banking from Edubridge Academy. He has very keen interest in Politics, Agri-business, private equity and global economics. He loves travelling and watching football. You can contact him via fikayo.owoeye@nairametrics.com

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Comments 1

  1. zobalimaimamakiakullum@gmail.com says:
    June 1, 2018 at 10:07 am

    Cocacola will soon regretted

    Reply

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