By Radarr Africa Business Desk
LAGOS, November 12 (Radarr Africa) – Nigeria’s four listed brewers increased their combined marketing spending by 23 per cent to N207 billion in the nine months to September 2026, as they fought to defend sales in a market where households are cutting back, company results and economic surveys show.
Nigerian Breweries Plc, Guinness Nigeria Plc, International Breweries Plc (IB) and Champion Breweries Plc spent a combined N168 billion on marketing and related expenses in the same period of 2025. Their combined revenue rose 8.41 per cent over the same period, from N1.87 trillion to N2.03 trillion, meaning marketing costs grew almost three times faster than sales.
Marketing took the largest share of revenue at IB, at about 14 per cent. The ratio was 9.6 per cent at Nigerian Breweries, 6.7 per cent at Guinness Nigeria and 5.88 per cent at Champion Breweries. Spending grew fastest at Champion, up 200 per cent, followed by IB at 29.1 per cent, Nigerian Breweries at 19 per cent and Guinness Nigeria at 17.4 per cent.
The spending came as consumers grew more cautious. The CBN’s September 2026 Household Expectations Survey showed consumer sentiment falling to minus 18.7 points from minus 9.9 points in August. The family financial situation index stood at minus 23.9 points and the family income sentiment index at minus 10.5 points. Households ranked food first among their spending priorities, followed by transportation, household goods, education, and electricity and water.
Data from the National Bureau of Statistics (NBS) showed alcoholic beverage inflation rising to 132.7 per cent in September from 132 per cent in August.
IB’s third-quarter figures show the pressure most clearly. Its revenue fell 14 per cent from the previous quarter to N140.54 billion from N163.36 billion, while operating expenses rose 30.1 per cent to N45.63 billion from N35.09 billion. The ratio of operating expenses to revenue climbed to 32.5 per cent from 21.5 per cent. CSL Research said the increase partly reflected higher marketing spend to defend volumes in a weak-demand environment.
Paul Uzum, executive director of Halo Capital Management Limited, said weak demand is hitting several consumer goods companies, especially those selling products that households can cut when incomes tighten. He also pointed to repeated changes in excise duties on beer, stout, wine and spirits as an added cost pressure.
Profit after tax for the nine months was mixed. Nigerian Breweries’ profit rose 33.4 per cent to N114.10 billion, helped by a 77.7 per cent fall in net finance expenses to N7.50 billion. Guinness Nigeria’s profit increased 53.1 per cent to N40.69 billion. Champion Breweries reported N2.17 billion, up from N2.04 billion. IB’s profit fell 5.7 per cent to N54.51 billion, as its tax expense rose 119.2 per cent to N35.93 billion.
The brewers are also aiming at a younger audience. Guinness Nigeria is running advertising with younger models and lifestyles aimed at Generation Z, including commercials aired during English Premier League matches, and has returned as a gold sponsor of Big Brother Naija season 11. IB, a unit of AB InBev, is running its Cheers to Moderation campaign in Lagos, Abuja, Onitsha, Ilesa, Sagamu and Port Harcourt, with the theme Chop Life Like a Boss, building on Global Beer Responsible Day.
