TANZANIA is sixth beer market, only behind Uganda, Nigeria, South Africa, Kenya and Ghana, a report by Deutsch Bank market research has revealed.
The report derived from the international beer producer Diageo's sales throughout Africa, shows that Tanzania's sales contribute three per cent of the company's overall sales on the continent contribution while the rest of Africa shares the remaining 15 per cent.
It shows neighbouring Uganda's beer sales contribute five per cent of the company's overall sales on the continent.
In Tanzania, Diageo's subsidiary company - Serengeti Breweries Limited (SBL) combined with the EABL portfolio accounts for approximately between 20 and 30 per cent of the Tanzanian branded beer sector.
SBL produces a portfolio of beer and non-alcoholic products, including its flagship Premium Serengeti Lager. The combined EABL / SBL portfolio accounts for approximately between 20 and 30 per cent of the Tanzanian branded beer sector while Tanzania Breweries Ltd (TBL)'s market share is between 70 and 80 per cent.
The report shows Nigeria is the biggest contributor with a market share of 36 per cent, followed by South Africa at 18 per cent, Kenya at 17 per cent and Ghana comes forth at 6 per cent. Speaking to 'Daily News' in a recent interview, the General Manager HEINEKEN East Africa Koen Morshuis, said the growth of the beer market is reliant on the fast growing population and growing GDP.
"The beer category in emerging markets is growing due to a strong combination of population growth (and more people reaching the legal drinking age) and economic growth, combined with increasing political stability. Which means that the per capita consumption of beer is growing in these markets," he said.
He said the beer consumption in Tanzania is at 7 litres, Uganda 9 litres and Kenya 10 litres, He said Tanzania is indeed a viable market for beer in Africa, adding that GDP growth and a rapidly increasing population of 3 per cent per year are driving consumers to trade up to more commercial branded alcohol.
This is also evident across the continent as the first three largest beer markets have either high population growth or higher GDP or both. The population of Tanzania, as expected in upcoming census is over 45 million, Nigeria, 160 million, South Africa 50 million and Kenya at 40 million, respectively.