Guinness Nigeria Plc has announced the introduction of a new Adult Premium Non-Alcoholic Drinks (APNADs) in new PET bottles into the Nigerian market.
Mr. Peter Ndegwa, Outgoing Managing Director, Guinness Nigeria Plc, announced this at the commissioning of the company’s N6.5bn PET bottles plant.
According to the Ndegwa, the new 33cl plastic bottle for the APNADs – Malta Guinness Classic, Dubic malt, and Orijin Zero was introduced to provide alternatives for the teeming consumers of the brands and will come in a 33cl plastic bottle.
How does this affect Guinness chances in the market
The competition in the non-alcoholic drink segment is very stiff as brands continue to battle for market share. In Nigeria, there are big brands in the non-alcoholic drink segment such as Coca Cola, Fanta, Pepsi and new entrants such as Big Cola.
The major players in the country are also looking to diversify their portfolio in a bid to meet the growing demand of various segments in the market and also bolster their revenue base.
Nigerian Breweries recently launched a new brand, Tiger Beer, into the Nigerian Market. The brand 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 said it will soon complete a new brewery plant in Shagamu, Ogun State, which would enable it to penetrate parts of the South West where it had hitherto been absent.
How this affects their bottom line
Nigeria Brewery’s profits for the the quarter ended March, 2018, show revenue dropped from N91.2 billion in 2017 to N82.9 billion in 2018. Profit before tax also dropped from N17.4 billion in 2017 to N15.2 billion in 2018.
Inter Brew’s latest results show the company made a loss before tax of N2.5 billion due to an increase in finance charges resulting from its merger. Revenue, however, increased from N9.4 billion in the previous year to N25.9 billion in 2018.
However, Guinness will release its annual report in July, although interim results suggest things are improving.
NB shares are trading at N112.00 in today’s trading session, with one year return down by 23.88%. International Breweries is currently trading at N41.30, with a one year return of 41.83%. Guinness share price is currently trading at N97.00 with a one year return of 36.54%.