Nigeria’s brewers spend N220 billion fighting for consumers in H1 2026

Nigeria's three listed breweries invested over N220 billion on advertising and distribution during the first half of 2026. This significant expenditure aimed to secure shelf space and consumer attention amidst fierce competition, according to Ugo Obichukwu, founder and CEO of Nairametrics, as reported on the Follow The Money podcast.

The three breweries collectively generated N1.4 trillion in revenue during H1 2026, marking a 7% year-on-year increase from N1.3 trillion in H1 2025. Nigerian Breweries Plc spearheaded the advertising and sales push, allocating N72 billion and N68 billion respectively, while International Breweries Plc spent a total of N43 billion on both categories.

Despite flat revenue, Guinness Breweries experienced growth, doubling its Q2 sales to N142.7 billion from N122.7 billion in Q1. This growth was attributed to leveraging Tolaram Group's established distribution network following its acquisition last year. Guinness Stout and Malta Guinness saw increased visibility in stores and at events, reflecting targeted marketing efforts.

Although Nigerian Breweries' brands, including Heineken, gained traction at events compared to Star Lager, Obichukwu cautioned investors about the high valuation of brewery stocks, with Nigerian Breweries and Guinness trading at 21 times earnings, and International Breweries at N11. He also highlighted that with younger Nigerians consuming less beer, breweries may struggle to maintain price increases and might need to rely more on marketing and distribution to protect their market share.

Price adjustments introduced by all three brewers in March 2026, driven by higher operational and raw material costs due to Nigeria's challenging economic conditions, became more apparent in the second quarter, impacting consumption patterns.