Uganda is fifth biggest beer market

Friday August 10 2012

By NICHOLAS KALUNGI

Uganda is the fifth biggest beer market, only behind Nigeria, South Africa, Kenya and Ghana, a report by Deutsch Bank market research has revealed.
The report derived from the international beer producer Diageo’s sales throughout Africa, shows that Uganda’s beer sales contribute 5 per cent of the company’s overall sales on the continent.

Nigeria is the biggest contributor with a market share of 36 per cent, followed by South Africa at 18 per cent, Kenya at 17 per cent and Ghana comes forth at 6 per cent.

Tanzania is sixth with 3 per sales contribution while the rest of Africa shares the remaining 15 per cent. In Uganda, Diageo’s subsidiary company – Uganda Breweries Limited (UBL) holds a market share of 46.5 per cent while Nile Breweries Limited (NBL), a subsidiary of SABMiller holds 52 per cent and Parambot Breweries Limited (PBL) 1.5 per cent.

Commissioning the construction of a new beer plant in Mbarara last year, Mr Nick Jenkinson, the managing director of NBL said the growth of the beer market is reliant on the fast growing population and growing GDP.

“Uganda is indeed a viable market for beer in Africa. GDP growth and a rapidly increasing population are driving consumers to trade up from cheap informal alcohol to more expensive commercial branded alcohol,” Mr Jenkinson said.

This is also evident across the continent as the first three largest beer markets have either high population growth or higher GDP or both. The population of Nigeria, South Africa and Kenya is at 160 million, 50 million and 40 million, respectively.

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However, the first half of 2012 has not been good for the beer industry in Uganda with both UBL and NBL admitting a fall in sales, estimated at between 5 and 6 per cent.

nkalungi@ug.nationmedia.com

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