The sharp decline in the purchasing power of consumers in Africa’s most populous economy is forcing beer makers to re-strategize on their product packaging and sizes by churning out smaller packaged drinks in PET bottles and cans.
A drink Can or beverage Can is a metal container designed to hold a fixed portion of the liquid such as carbonated soft drinks, alcoholic drinks, fruit juices,
This new shift seems to have won the heart of consumers and has also seen makers double down on their effort to capture more market in both the mainstream segment of the market and value brands.
Diageo owned Guinness in its 2019 full-year result for the period ended 30th June noted that the bottle format drinks is losing market share to lower margin Can and PET formats in both beer and malt category
“The bottle format in returnable glass tends to be higher margin in our business and in the total business actually in the categories in which we operate, however, we saw that overall non-returnable glass-like PET and Cans grow much faster than the returnable glass format and as you know from various conversations we’ve had cans and PET tend to attract a much lower growth margin than we have in returnable glass,” the management noted.
Nigerian Breweries Plc, Nigeria’s the largest brewer by market size, during its annual capital market forum revealed plans to introduce new 33cl sleek packages in Can to aid volume growth. It had earlier introduced 33cl Cans for Heineken and Tiger brands to support sales.
International breweries’ Trophy brand is also enjoying massive patronage by consumers with the introduction of 500ml Trophy drink.
Adekemi Ayoola, owner of a retail outlet in Ikeja said there has been a surge in the demand for Can drinks by consumers.
“It is selling fast now because some people want drinks they can keep in their hand or even in their pockets and drink at their convenient time,”
According to Ayoola, the new Can introduction has solved the problems associated with glass bottles as many consumers damage their glass bottles while drinking with some not returning the glass bottles.
Onyeka Obi, a Lagos-based manufacturer said the paradigm shift by beer makers to can packaging opens a new business opportunity for willing investors in the country.
OLUFIKAYO OWOEYE
