The Nigerian Beverage Industry will continue to experience growth amid uncertainties in the economy.
The economy is beset by a host of macro-economic headwinds, from drop in oil price to devaluation of the naira, rising inflation, a weakened consumer confidence and an insurgency in the North of the country that is going into its seventh year. With that said, we still feel that the beverage industry has a bright prospect. Some sectors will fair better than others.
Seven-Up Bottling Plc’s year end results shows the company’s aggressive market penetration across various product lines as profit nudged up to 10.64 percent despite a hard biting economic environment that has seen stunted growth in consumer product firms in the country.
The company declared a profit of N7.12 billion for the year ended March 2015, compared with N6.43 billion, a year ago. Sales were up by 5.93 percent to N82.45 billion.
The growth in sales was attributed to the company’s aggressive penetration in the rural areas than urban Nigeria. This gave the company higher market leverage than newer fringe players competing with the products in the cities.
