Euromonitor, a leading London-based strategic market research firm, published a report titled ‘Alcoholic Drinks in 2021. According to the report, the total sales of premium alcoholic beverages (drinks) in Africa’s biggest economy surged to a six-year high in 2021 despite increased prices, with a projection for growth in the coming years.
However, renowned Nigerian International development expert Dr Joe Abah, Country Director at DAI, recently shared an intriguing observation on his X (Twitter) account (@DrJoeAbah). He noted a shift in the drinking habits of his friends, particularly those over the age of 60, who have transitioned from indulging in premium alcoholic beverages like good champagne, fine cognac, or single-malt whiskey to beer.
Diageo, one of Nigeria’s most prominent players in premium spirit, has concluded moves to end the importation of premium spirit brands. With these industry trends, questions about the economic realities and their influence on the choices of Nigerian consumers when it comes to premium spirit beverages.
Affordability Amid Economic Challenges
[@justendy “A bottle of Glenfiddich 21 years is over 200,000 now while a bottle of Heineken is just 1000. Could as well be the economy.”
Above is one of the comments by @justendy, in response to Dr Joe Abah’s posts, pointing out the significant price difference between a bottle of Glenfiddich 21 years and a bottle of Heineken.
With a KPMG prediction that headline inflation will hit 30% by December 2023, Nigeria is going through one of the worst economic challenges, driven by subsidy removal and floated exchange rate policy. These factors have led to a rise in the cost of imported goods, including premium alcoholic beverages. The affordability of these drinks has become a concern for consumers, particularly those on fixed incomes or pensions. As a result, individuals may be making choices based on economic prudence, opting for more budget-friendly alternatives. This could mean switching to less expensive brands within a category or switching to another category, like beer.
The observation hints at the economic pressures driving individuals towards more affordable options. In a country where inflation and economic uncertainties prevail, the high cost of premium alcoholic beverages becomes a luxury many cannot afford.
Quality and Adulteration Concerns
Some other comments on the post highlighted concerns about the quality of premium alcoholic beverages. Adulteration of wines, cognacs, and whiskies with potentially harmful substances has become a growing issue. The fear of health complications, including kidney and liver failure, has prompted individuals to reconsider their beverage choices.
[@bolrin] “Besides that sir, lots of wines, cognacs and whisky are now heavily adulterated with a very high tendency to cause kidney and liver failure so it’s better to keep it mild for now.”
[@NickIyke] “Loads of fake drinks out there, selling at the price of the original. Better to revert to beer. Plus cost went above the roof with the dollars.”
The adulteration of alcoholic beverages raises serious health concerns among consumers. With reports of counterfeit and diluted premium drinks circulating in the market, consumers are becoming increasingly cautious about the potential risks associated with consuming these beverages. This health-conscious shift contributes to the growing preference for milder, more reliable options like beer.
Changing Consumer Behavior: Tolerance and Health Concerns
Dr Joe Abah’s observation suggests that beyond economic factors, there is a notable shift in the preferences and habits of consumers. The idea that many have “gone off” premium drinks implies a changing cultural and societal norm regarding alcoholic beverage consumption.
[@mcniran] “From experience, in addition to possible economic reasons, heartburn sets in at some point, and you have to take antacids after drinking those fine drinks. But you can get away with a bottle or two of beer.”
[@antifailedstate] “Brother tolerance reduces as we grow older. The way ogogoro on rocks dey attack my guts now it doesn’t make sense anymore. I take a few shots here and there. But mostly make cocktails now and reduced drinking straight.”
[@DrJoeAbah] Well, one says he can’t tolerate drinks with high alcoholic content anymore. That’s why he just does beer now.
Factors Driving Behavioural Shifts in Premium Alcoholic Beverage
Like many other countries, Nigeria experiences cultural norms and preferences shifts over time. The evolving social landscape may influence how individuals perceive and engage with alcoholic beverages. Factors such as lifestyle changes, health consciousness, and evolving social norms contribute to transforming drinking habits, with beer emerging as a more accessible and socially acceptable option.
Some other comments opined health issues are responsible for the shift from premium alcoholic beverages.
[@mcniran] “From experience, in addition to possible economic reasons, heartburn sets in at some point, and you have to take antacids after drinking those fine drinks. But you can get away with a bottle or two of beer.”
[@antifailedstate] “Brother tolerance reduces as we grow older. The way ogogoro on rocks dey attack my guts now it doesn’t make sense anymore. I take a few shots here and there. But mostly make cocktails now and reduced drinking straight.”
Conclusion:
The nexus between economic challenges, health concerns, and evolving societal norms offers insights into the changing landscape of premium alcoholic beverage consumption in Nigeria. The observed shift from high-end drinks to beer among the older demographic signifies a complex interplay of factors influencing consumer choices.
As the economic landscape continues to evolve, it will be interesting to observe how these dynamics shape the future of the premium alcoholic beverage market in Nigeria.
Posts and Comments are culled from the X handle: @DrJoeAbah
