The resilience of players in the Nigerian brewery industry was further tested in 2020, as the spill-over effect of the pandemic amplified the impacts of structural challenges besetting the industry’s operating environment. Before 2014, the major talking point on the industry’s operating environment was the increased attraction of global players such as Heineken and SAB-Miller, due to years of strong industry profitability performance. For instance, between 2006 and 2014, the industry’s gross and EBITDA margins averaged 47.0% and 26.0% respectively. This was made possible by the impressive performance of the broader economy, as annual real GDP growth averaged 6.4% over this period, while the exchange rate (₦141.35/$1.00), the inflation (10.1%) and the unemployment rates (12.1%) supported strong purchasing power of consumers. However ...
