Nigerian Breweries blames falling beer sales on low consumer demand

BUSINESS, New Products, News, NIGERIA, Nigerian state programs, wazobia companies
Nigerian Breweries Plc, on Monday reported a 9% drop in first quarter sales (Jan – March) to ₦82.9bn ($230 million) from ₦91.2bn in 2017. The brewing giant said that consumer spending has yet to recover despite signs of improvement in the country’s macroeconomic conditions. In the release of its first quarter results on Thursday, Heineken N.V., the parent company of Nigerian Breweries blamed the decline in sales at its Nigerian unit partly on destocking at the distributor’s level. Destocking is when a distributor reduces the quantity of stock held due to weak demand. Net finance charge in Q1 grew 37% to ₦2.4bn, adding to the firm’s challenges. Profit after tax declined 11% to ₦10.2bn ($28 million) from ₦11.4bn in the previous year. Despite the disappointing results, the company said that i

Non-profit group seeks ways to improve Nigeria’s low cassava yield

BUSINESS, New Products, News, NIGERIA, Nigerian state programs, wazobia companies
A non-profit international alliance of 45 organisations known as The Global Cassava Partnership for the 21st Century (GCP 21) is set to meet in June in Benin Republic to seek ways on how to help Nigerian farmers boost low cassava yield and create wealth for themselves as well as food security for the nation. Cassava is the main source of carbohydrates in Nigeria and other West African countries, replacing some traditional staples such as millet and yam. With its variability to dry climate and its applicability to many products including foods, confectionary, sweeteners, chips and pellets, experts say cassava has the capacity to help Nigeria become less reliant on food imports. According to GCP 21, West Africa produces 50% of world cassava. Nigeria by itself accounts for 20.2% of this outpu...

FG weighs raising levy on imported starch to boost local cassava production

BUSINESS, New Products, News, NIGERIA, Nigerian state programs, wazobia companies
The Federal Government is said to be considering levying imported sweeteners, flour and ethanol in order to reduce the food import bill and boost local investment in cassava processing, the ingredient from which starch is derived. Despite been the world’s largest producer of cassava, Nigeria still imports most of its industrial starch, a by-product of cassava. With an import levy, the government hopes to reverse the trend under an “Industrial Cassava Policy.” Nigeria spends nearly N252bn ($700 million) annually to import industrial starch and other by-products of cassava. With a local processing capacity of 35%, industries that depend on cassava by-products may have no other choice than to look inwards at local producers as government explores measures to place levies of between 0% – 60% o