A common maxim often used by economists is that production is not complete until goods reach the final consumer.
In the scheme of things, goods are manufactured by factory workers and production managers. However, the output cannot reach final consumers except the middlemen step in.
In the case of Nigerian Breweries, which controls over 50 percent of the beer market share, the middlemen are the distributors who move a portfolio of products from factories to markets.
Distributors took products from beer to malt from factories to consumers in Kano, Kaduna, Aba, Ibadan, Onitsha and other parts of the country.
This explains why the brewer’s revenue rose to a record high in 2024.
Read also: How we took Nigerian Breweries products to remotest parts of the nation -Distributors
For context, Nigerian Breweries reported a record N1.1 trillion in revenue in the financial year ended December 31, 2024.
Its 2024 revenue represents an 81 percent increase from the N599.6 billion recorded in the corresponding period in 2023.
A further breakdown of the audited results revealed a significant 51 percent growth in group gross profit from N212.6 billion in 2023 to N320 billion in 2024. The operating profit equally grew significantly by 59 percent from N44 billion during the period in spite of the challenges of huge increase in input costs.
Company executives say the impressive performance could not have been possible without distributors across Nigeria.
“Last year, every business in Nigeria started on a shaky note. With the naira devaluation, businesses could not figure out how the year would pan out. But with the level of our committed distributors, we were able to weather the storm,” said Olalekan Awosanya, zonal business manager, West.
Nigerian Breweries celebrated its distributors who contributed to its 2024 performance on February 7. Scores of distributors were brought to Lagos, Nigeria’s economic capital, from Abuja, Kaduna, Onitsha, Aba, Ibadan and other parts of the country to receive awards for their performance. The distributors came from Lagos North, Lagos South, Benin, Ibadan, Aba, Enugu, Kaduna, Ibadan, and other parts of Nigeria.
“We made some very bold decisions around our strategies and around how we excite our consumers. That is the reward we are seeing today,” Awosanya said.
Nigerian Breweries brands sold like cakes in the South-East part of the nation. Its Life Beer has been re-launched with a new look and identity. Analysts say it is triple-filtered with a smooth taste.
“The biggest driver for us is our strong portfolio. This is what drives volumes in the East,” said Chinwe Ude, zonal business manager, East.
Read also: Naira volatility leaves Nigerian Breweries counting highest losses
She noted that the distributors were selected for their ‘top-notch’ performance in 2024.
Distributors told BusinessDay that Nigerian Breweries made their lives better in 2024. Their products retained their quality, driving sales and revenues across the board.
For Aloysius Obute, CEO of Ray Global Resources, Kaduna, who is the biggest distributor of NB products in the North-West state, “Nigerian Breweries’ products are in high demand. They are accepted in Kaduna and are even scarce now because they are in high demand.”
Christian Ukegbu, CEO of Redemption Resources Nigeria Limited, said: “Nigerian Breweries has the best portfolio. Every brand of beverage is covered. They are accepted in the market because of their quality. That is the peculiarity with NB products.”
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