Average wine consumption per capita jumped from 0.1 liters to more than 0.4 liters within 2004 and 2010.
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
GAIN Report Number:
Strong Growth Persists in Nigeria?s Wine Market
Russ Nicely, Regional Agricultural Counselor
Marcela Rondon, Regional AgAttache & Uche Nzeka,
Agricultural Marketing Specialist
Average wine consumption per capita jumped from 0.1 liters to more than 0.4 liters within 2004 and
2010. Still wine (red and white) category led the market?accounting for a share of more than 80
percent. Local wine processing is underdeveloped and high-cost. Nigeria?s large and increasing
population (over 150million), increasing health consciousness and upward social trends are assisting
growth in wine exports to Nigeria. The EU, South Africa and other suppliers offering good quality and
inexpensive wine products are the leading suppliers. Export growth of U.S. wine to Nigeria is
astronomical (from $120,000 to $2.7m) between 2008 and 2010 but market share remains small. U.S.
exporters are encouraged to exploit opportunities provided by the increasingly large wine demand to
boost U.S. food and agricultural exports to Nigeria.
SECTION I: MARKET OVERVIEW
In Nigeria, alcoholic beverages are considered a type of food and alcohol consumption is mostly a social
activity. With population, over 150 million, Nigeria provides a large market for alcoholic beverages
estimated at $4.0 billion.
Nigeria?s beer market was worth $2.7 billion (about 70% of total alcohol market) in 2009 representing
over 15 million hectoliters of beer (lager and stout types) brewed locally by multi-national processors
(Heineken, Guinness, South Africa Breweries, and a few small others). They are brewed mostly with
imported barley, malt and hops.
The GON placed an import ban on beer to protect local industry in 2003 and only alcoholic wine and
spirits can be exported to Nigeria. Domestic alcoholic wine production is grossly underdeveloped and
the amount entering formal marketing channels is insignificant. Alcoholic wine valued about $200
million (approx. 5% of total alcoholic beverages), are mostly imported.
Some pineapple-based wine products and distilled gins are also formally produced and sold in the
market but their share of the wine and spirits market is insignificant. Wine and spirits from traditional
alcoholic products are also widely produced and consumed but they do not pass through formal
Nigeria?s large wine market continues to show strong growth as a result of the increasing middle class
as well as the gradual shift from beer to wine consumption as wine is generally perceived to be a
healthier alcoholic beverage. This is creating export opportunities for U.S. wine exporters.
Advantages & Disadvantages
Nigeria?s large population of more than 150 million Very small presence of U.S.
growing at 3 percent per year provides U.S. exporter agribusinesses in Nigeria and limited
large and growing market for economic shipments and knowledge of the Nigerian market
trade among many in the U.S. trade.
The U.S. favorable disposition to trade liberalization. Import bans remain on some agricultural
product imports, including beer and
U.S. processed foods recording increasing awareness and Nigeria is predominantly a mass market
rising demand among Nigerian consumers; Also U.S. and highly price-sensitive?it demands
foods enjoy higher quality perception among Nigerian more of the low priced food and
consumers. agricultural products.
Changing demographics including greater urbanization, Longer transit times, and relatively long
more women working outside the home, and changing port clearance procedures all sharply
lifestyles of the large youth population, etc are reduce shelve life of U.S. products in
expanding potential market for U.S. food and Nigeria.
Nigeria?s rising income (average per capita income Negative perceptions about Nigerian
increased by nearly 200 percent to over $1,000 in the last businesses among some U.S. exporters
five years). and a reluctance to do business in
Increasing market similarity and ease of transaction with Competition from other suppliers,
Nigeria?s growing middle-class and western-style retail especially the EU and South Africa.
sector, rising incomes and a trend toward greater demand
for healthy foods.
U.S. consolidators and exporters of food and agricultural U.S. freight rates are about 40-60%
products can sell mixed containers at relatively low-cost higher when compared with the EU and
and low-risk since Nigeria?s adoption of the ?Global South Africa.
Listing for Supermarket? (GLS) items.
The consistent and reliable image of U.S. suppliers in Inconsistent and poor implementations
terms of volume, standards and quality, among Nigerian of GON policies.
U.S. superior and efficient agricultural production and High levels of unofficial transactions
processing. and procedures.
SECTION II: MARKET SECTOR OPPORTUNITIES AND THREATS
Imports and Market Opportunities:
In 2003 GON placed a ban on imports of beer and all non-alcoholic wines and beverages into the
country to protect local industries. The ban remains in place. Only alcoholic wines and spirits can be
imported at 30 percent tariff in line with the ECOWAS regional tariff (CET). However, the government
(GON) introduced a 20-percent levy towards the end of 2008?thus raising real duty on wine and spirits
to 50 percent.
Despite this, average wine consumption per capita jumped 1236.2% to approximately 0.4 liters and
increasing between 2004 and 2010. Still wines led the market?the category accounted for more than
80 percent share. Nigeria?s large and increasing population (over 150 million) and
underdeveloped/high-cost local wine create strong growth prospects for wine exports to Nigeria.
Growth will be for Nigeria?s market over the coming years. The expected growth will result from
Nigeria?s large population growing at an annual rate of 3% and providing an ever increasing consumer
base. Nigeria?s middle-class and income have also continued to increase for more than a decade. The
positive outlook for Nigeria?s democracy and economy also means consumer spending will increase and
advance sales growth. Nigerians are also increasingly becoming health-conscious and accepting wine
products as healthier than competing beverages such as, beer, spirits, soda, and others served at homes,
bars and social activities. New brands and the entry of new players are beginning to result in increased
competition, and lowered prices, aggressive marketing and fuel growth in sales.
Nigeria is a mass consumer market and demand for wine and spirits is not driven by product quality?
but mostly, by product prices, tastes and higher alcoholic contents. Nigeria?s mass market prefers sweet
wines. Low priced products with alcoholic contents at more than 6 percent also constitute greater than
85 percent of the total.
Average prices of the 10 top selling wine range from $30 to $150 per carton (of 12 by 750 ml bottles).
Products within the price range of $30 to $100 per carton (of 12 by 750 ml bottles) constitute over 70%
of the total market. Compared to beer and other locally available alcoholic beverages, imported wine
and spirits are 40-60% more expensive and were not as widely distributed. The bulk of wine used to be
sold through supermarkets, convenience stores, some specialty stores as well as hotels, clubs, bars and
restaurants (HRIs) patronized by the middle and high income consumers.
However, the recent and increasing shift from beer to wine consumption has continued to change wine
distribution channels. More wine and spirits are now sold to the consumers and re-sellers through the
wholesalers located in the traditional open wet markets (mostly patronized by the low and middle
Currently, sales through traditional markets account for more than 60%. Wine consumption at bars and
other food service outlets is small at less than 10 percent of the total. Sales through supermarkets,
convenience store and supermarkets account for about 20 percent of the total.
Distribution Flowchart for Wine Products
SWR (1%) SMR (10%) HRIs (10%) CSS (35%) OWR (44%)
Open Wet Market Wholesalers (OWW)
SWR (Specialty Wine Retailer)
SMR (Supermarket Retailer)
CSS (Convenience & Street Stores)
OWR (Open Wet Market Retailer)
HRI (Hotel, Restaurant, Bars, Clubs & Catering Industries)
There are also outlets specializing in retail sales of imported wine and spirits but their number and sales
are insignificant. However, majority of these specialty stores stock mostly selections of the more
expensive premium brands.
Generally, 70 percent of imported wine and spirits enter the market through importer-distributors. The
remaining products pass through direct sale to retailers and HRI institutions. Wholesalers in the
traditional open wet market distribute more than 80 percent of imports by the importer-distributors.
The EU countries (Spain, Italy, France, etc) and South Africa are the major wine suppliers to Nigeria.
Although France, Italy, and Spain in the EU as well as the U.S. (California) are the traditional wine countries, Nigerians
import mostly from South Africa, Chile, Argentina and all other sources that produce wine products that are perceived to be
good quality and also offered at affordable prices.
Data Source: BICO Report
U.S. wine and spirits exports to Nigeria had grown from $120,000 in 2008 to $2.7m in 2010 (BICO report). However,
industry sources indicate that U.S. official export data do not capture much of U.S. wine exports to Nigeria as many products
(especially those attracting high duty such as wine) still pass through port clearance either under-valued or undeclared at
Nigeria?s ports. Many of such products also enter the market through cross-border smuggling activities.
Alcoholic wines and spirits are free for entry into Nigeria at 30 percent tariff plus a 20-percent levy both of CIF?bringing
real duty to 50 percent on CIF. Like all food products exported to Nigeria, wines and spirits must be registered with
NAFDAC (Nigeria?s FDA equivalent) in order to be legally exported and sold in Nigeria for marketing and consumption.
For details, please click: [Food and Agricultural Import Regulations and Standards - Narrative_Lagos_Nigeria_7-20-2010].
U.S. wine and spirits exporters interested in entering the Nigerian market:
i. Can contact the Office of Agricultural Affairs, U.S. Consulate, Lagos, Nigeria for assistance in selecting a local
importer-distributor or agent;
ii. Must appoint local importer-distributors, agents or institution in Nigeria to process certifications with the GON
regulatory bodies, introduce the product, and develop consumer demand;
iii. May exhibit at the annual International Wine, Spirits & Beer Event at the NRA Show which holds every third week
of May in Chicago. Nigerian wine importer-distributors and hotel, restaurant and bar operators organized by
FAS/USDA in Lagos attend the event. This is expected to offer opportunities to meet the Nigerian buyers and make
SECTION III: COSTS AND PRICES
Average Retail Market Prices (Top 10 brands in sales ranking):
Average Retail Price / carton of (12x750ml
Brand Sales bottles) $ Country of
Baron de Val 1 37.00 Spain
B & G Cuvee 2 55.00 France
Andre Brut 3 100.00 USA
Carlo Rossi 4 75.00 USA
Cape Maclear 5 40.00 South Africa
Traffic Red 6 40.00 South Africa
J.P. Chanet 7 65.00 France
Kagor 8 100.00 Moldovia
Mounton 9 145.00 France
10 35.00 South Africa
A bottle contains 750 milliliters (ml)
A case (carton) contains 12 bottles
Per carton (case) prices stated
Average Wholesale Selling Prices of Selected Brands of Wines & Spirits ($):
Brands Pack x Size PRICE ($)
Andre - Brut 12 x 75 cl 90.00
Andre - Rose 12 x 75 cl 90.00
Carlo Rossi - Red 12 x 75 cl 70.00
Carlo Rossi - Rose 12 x 75 cl 70.00
Carlo Rossi - White 12 x 75 cl 70.00
Carlo Rossi - Cabernet Sauv 12 x 75 cl 80.00
Carlo Rossi - Charodnnay 12 x 75 cl 80.00
Carlo Rossi - Red 6 x 1.5 L 65.00
Carlo Rossi - White 6 x 1.5 L 65.00
Carlo Rossi - Sangria 6 x 1.5 L 65.00
Carlo Rossi - Rose 6 x 1.5 L 65.00
Carlo Rossi - Red 4 x 3 L 75.00
Carlo Rossi - White 4 x 3 L 75.00
Carlo Rossi - Sangria 4 x 4 L 85.00
Ernest & Julio - L/s (V.S.) 12 x 70 cl 110.00
Ernest & Julio - L/s (V.S.O.P) 12 x 70 cl 125.00
Ernest & Julio - L/s (X.O) 12 x 70 cl 155.00
Ernest & Julio - Cask & Cream 12 x 75 cl 115.00
Ernest & Julio - Cask & Cream - Chocolate 12 x 75 cl 115.00
Ernest & Julio - Cask & Cream - Caramel 12 x 75 cl 115.00
Sierra Valley - Gallo Family - Merlot 6 x 75 cl 45.00
Sierra Valley - Gallo Family - Zinfandel 6 x 75 cl 45.00
Turning Leaf - Cabernet Sauv. 6 x 75 cl 50.00
Turning Leaf - Chardonnay 6 x 75 cl 50.00
Rubis Chocolate Velvet Ruby 6 x 50 cl 65.00
Chivas Regal Scotch Whisky - 12 Years Tin 12 x 75 cl 305.00
Chivas Regal Scotch Whisky - 18 Years 6 x 75 cl 305.00
Chivas Regal Scotch Whisky - 25 Years 3 x 75 cl 660.00
Royal Salute Cask - 21 Years 6 x 70 cl 990.00
Glenlivet Single Malt whisky - 12 years 6 x 70 cl 185.00
Jameson Irish Whiskey 12 x 70 cl 160.00
Absolut Vodka - Original 12 x 1 ltr 160.00
Absolut Vodka - Kurrant 12 x 1 ltr 160.00
Absolut Vodka - Citron 12 x 1 ltr 160.00
Absolut Vodka - Rasberri 12 x 1 ltr 160.00
Mumm Champagne Cordon Rouge 6 x 75 cl 240.00
Ricard 12 x 1 ltr 155.00
Pastis - 51 12 x 1 ltr 155.00
Malibu 12 x 75 cl 150.00
Kahlua 12 x 70 cl 160.00
Martell V.S. - Box 12 x 70 cl 260.00
Martell V.S.O.P - Box 12 x 70 cl 485.00
Olmeca Blanco Tequila 12 x 75 cl 170.00
Olmeca Gold Tequila 12 x 75 cl 180.00
Cl: centiliters (10 ml equal 1 cl)
SECTION V: POST CONTACT AND FURTHER INFORMATION:
1. Agricultural Affairs Office (USDA/FAS)
American Consulate General
2, Walter Carrington Crescent
Victoria Island, Lagos-Nigeria
Tel: 234 -1-460-3577; 775-0830
2. National Agency for Food & Drug Administration & Control (NAFDAC)
Plot 204, Olusegun Obasanjo Way
Wuse Zone 7, Abuja-Nigeria
Telephone: (234) -9-671-8008, (234)-1-473-0643
3. Nigeria Customs Service
3-7, Abidjan Street
Off Sultan Abubakar Way
Wuse Zone 3
Tel: 234-9-523-4694, 523-6394, 2534680
E-mail: email@example.com; firstname.lastname@example.org
4. Federal Ministry of Agriculture & Water Resources
Federal Secretariat, FCDA
PMB 135, Area 11
Tel: (234) 9-314-1931, 314-2405
Fax: (234) 9-314-2532
Appendix I: Nigeria?s Economic Structure (Annual Indicators)
2006** 2007 2008 2009 2010
GDP (US$ bn) 116.6 142.4 179.5 352.3## 369.8
Real GDP growth (%) 5.6** 6.2* 11.6* 5.8** 6.8
Consumer price inflation (av; %) 7.5 5.4* 15.1* 12.4** 13.9
Population (m) 144.0 146.2* 152.2 154## 158+
Exports of goods fob (US $ b) 58,872 61.8 76.8 48.1** 76.33
Imports of goods fob (US$ b) - 38.8 45.5 31.7** 34.18
Current account balance (US$ b) 1.5 2.2 2.7 11.9** 27.77
Foreign exchange reserves excluding 42,277 59,700^ -- 16,956 43.36
gold (US$ m) (incl.
Total external debt (US$ bn) 6.5 7.8 8.3 9.7** 11.02
Debt-service ratio, paid (%) 1.8 3.4 -- -- --
Exchange rate (av.) N: US$ 127.38 125.00* 118.5* 150.0 150.88
Notes: *Actual. ** Economic Intelligence Unit estimates. *** Official Estimates. ##EconoWatch
?N?, represents Naira (Nigeria?s currency). ^ Industry sources. # - CIA estimates.
Sources: 2008 figures obtained from Economist Intelligence Unit, Country Report (Nigeria)?May, 2009.
2010 figures are estimates from CIA World Factbook, 2011