Tight brand war in soft drinks nose-dives Coca-Cola HBC market share in Nigeria
Amidst surge in soft drinks brand powered by booming local content, formally leading sole market share holder, Coca-Cola HBC the parent company of The Coca-Cola Company in Nigeria has opened up on shrinking market share.
Business Hilights Intelligence Unit (BHIU), an independent market research arm of Business Hilights Media Group in its latest Soft Drinks Market Outlook for 2019, noted that “Since second quarter of 2017, there had been rising entrance of new indigenous products that came with high powered marketing strategies that disrupted sales performance of traditional products in the sub sector”.
This may be linked to the confession of Coca-Cola HBC in its latest report and outlook its sales volume in Nigeria has continued to nose-dive in a highly competitive environment upon recent strategic reforms and investments in Nigeria.
Giving more details in its 2018 full year result released recently, the Group observed that whereas production volume increased by 4.2 percent in emerging markets and jumped 4.3 percent in growth in all countries, the performance skipped Nigeria market.
Coca-Cola HBC noted that in developing markets, volume grew by 8.8 percent lead by Poland, Hungary, and the Czech Republic.
However, the feat is not the same in Nigeria as it recorded very low volume in Nigeria due to intense competition in Sparkling segment which comprises the trademark Coca-Cola and the Coca-Cola Zero variants, Water, while juice and Energy delivered positive results.
