Heineken Warns Of Value Brand Switch

Must Read

Why Presidency Should Return To South In 2023: El-Rufai

Kaduna State governor, Nasir El-Rufai, has said the Presidency has advocated for the return of the presidency to the...

Why We Hovered Around As Boko Haram Attacked Adamawa Community: Air Force

The Nigerian Air Force (NAF) has explained why it could not open fire as Boko Haram attacked people in...

Oloye Akin Alabi Meets Mason Greenwood After Stunner Against Watford (Photo)

Nairabet owner and member representing Egbeda Ona-Ara federal constituency in the lower chamber of the National Assembly, Oloye Akin...

Oshiomhole Will Reap Consequences Of His Unruly Behavior: Obaseki

Governor Godwin Obaseki of Edo, says no one would hold his administration responsible if Adams Oshiomhole, national chairman of...

Odion Ighalo Kicked-Off Training Ground By Ladies Who Didn’t Recognize Him

Nigerian football star, Odion Ighalo suffered a stranger rejection from the University of Manchester women’s team. The new Man United...


Heineken has said that consumers are “still drinking beer” in Nigeria but warned that many are trading down to other brands due to the economic situation of the country, as the country recovers from a major currency devaluation.

Nigeria is said to account for about half of Heineken’s sales in Africa and the Middle East, but Heineken says a move to value brands is increasingly putting pressure on its margins.

It says, however, its overall beer volumes in the country increased in the first-half of the year.

Heineken CFO Laurence Debroux said yesterday, “As for consumers in Nigeria, the good news is that they keep drinking beer.

He also added, “After the first half of 2015 where we were a bit worried about the volumes, now this is back, but [consumers are] definitely trading down to more value and lower mainstream brands, which are actually flying in volumes.

Nigeria has been hit by an economic downturn fuelled by a drop in oil prices.

Last month, the government introduced a flexible exchange rate that resulted in a 40% devaluation of the Naira.

Heineken said this week it has taken an EUR24m hit from the devaluation, however, it is now finding it easier to convert Nigeria’s Naira into Euros and US dollars.

Heineken CEO Jean-Francois van Boxmeer, while commenting on the situation in Nigeria, said the brewer will “need to do some pricing over there because otherwise, you might risk your business going really down“.

Van Boxmeer was speaking yesterday after the release of the first-half results, in which Heineken shrugged off a subdued second-quarter to post first-half sales and volumes growth.

- Advertisement -
Ad ==> Discover how a young Nigerian graduate now makes a consistent 40k per week doing a legitimate online business. You too can start yours now, click here!!!

More Articles Like This

- Advertisement -