The Nigerian Beer Wars: SABMiller’s Entry into the Nigerian Brewing Space

Abstract

The Nigerian Beer Wars case examines the industry structure and competitive strategy of the incumbents in the Nigerian beer market, Nigerian Breweries and Guinness, in the face of the threat of the entry of SABMiller, Africa’s largest brewer, into the Nigerian market. The Nigerian beer market was dominated by the duopoly of Nigerian Breweries and Guinness, with a combined market share of 80 %. After some failed attempts to enter the Nigerian market, SABMiller eventually succeeded via an acquisition. In view of the fact that Nigeria’s beer consumption was 10 litres per capita, substantially below the global average of 27 litres per capita, what would be the best approach for the incumbents to fend off the rising threat posed by this new entrant?