Afrigather Champagne shipments from France to Africa’s most populous nation have surged to the best stage in eight years, knowledge obtained by BusinessDay present.
Nigeria’s champagne import volumes elevated by 15.3 p.c to 644,452 bottles in 2022 from 559,088 bottles in 2021. The worth additionally rose by 17.8 p.c to £25.3 million final 12 months, in line with knowledge compiled by Comité Champagne, a commerce affiliation that tracks quantity and worth of exports from France.
The extent of champagne imports into the nation has been rising since 2020, when it plunged to a file low of 304,199 bottles from a excessive of 768,131 bottles in 2014, the info present. That of 2022 is the best beneath the President Muhammadu Buhari administration.
Globally, 326 million bottles of champagne have been shipped in 2022, a rise of 1.6 p.c over the earlier 12 months. The highest 5 largest champagne markets are the USA of America (33.7 million), United Kingdom (28.1 million), Japan (16.6 million), Germany (12.3 million) and Italy (10.6 million).
Africa’s largest financial system moved up by 4 locations, rating twenty eighth out of 192 nations from thirty second in 2021. This enchancment additionally made Nigeria the second largest champagne market in Africa behind South Africa, with 1.3 million bottles.
“The return of shopper confidence post-COVID, plus stability in some sectors like monetary providers, oil and fuel, and the buyer items sector could also be liable for the rise in champagne volumes,” Victor Ikem, a Lagos-based champagne and wine retailer, stated.
He stated all through the second quarter until This autumn final 12 months, there was an upsurge in political actions, which meant that a variety of disposable money was obtainable within the system and quite a lot of high-profile political occasions have been held which will need to have impacted on the consumption of champagne and different alcoholic drinks.
“That being stated, it is rather vital to state that each one these components contributed to various levels to the expansion recorded regardless of the inflation now nearing 22 p.c, unemployment round 33 p.c, and the a number of different headwinds,” he stated.
Uchenna Uzo, a shopper knowledgeable and college director on the Lagos Enterprise College, stated the rise in champagne consumption shouldn’t be throughout all of the segments of the financial system however that there’s a small group of steady orders from the prosperous and political class.
“So, the spike that you’re seeing is from events and occasions hosted by the higher class,” he stated.
Champagne, a French glowing wine, has turn into greater than only a mere alcoholic beverage in Nigeria. The drink, which is related to luxurious, has lengthy been the go-to drink for celebrations.
Learn additionally: Nigeria’s food importation gulps N1.9trn in 2022
Many Nigerians like to pop the drink to rejoice glad events, from birthdays to weddings to clubbing and spending time with mates. The champagne manufacturers are on the larger finish of shoppers’ life-style.
“Champagne is a way of life drink that folks use to sign aspiration worth, their standing and rejoice their achievements. So, it isn’t a discretionary product or secure or fast-moving shopper merchandise,” Uzo stated.
A BusinessDay survey throughout some retail shops in Lagos confirmed that the costs of various champagne manufacturers equivalent to Moet Imperial (Brut), Moet Rose, Vurve Cliquote, Don Perignon and Cristal vary between N50,000 and N200,000.
Abiola Gbemisola, a shopper items analyst at FBNQuest, stated the demand and provide of luxurious items aren’t actually affected by inflation ranges within the nation. “It’s affected by the wealth ranges of the patrons and the flexibility to play inside that house.”
He stated Nigeria’s financial system from an occasions perspective is best now than earlier than as there was a restoration in spending on luxurious objects.
Though the champagne market is enhancing, it’s but to get to the extent it was in 2013 when it recorded 768,131 bottles as a result of excessive value of international trade and introduction of luxurious tax. This has elevated the price of champagne, making shoppers to hunt cheaper alternate options like wine.
“Nigeria’s excessive inflationary pressures has made much less folks to eat champagne however extra folks to eat inexpensive high quality wines that commerce within the retail area between N2,000-N5,000,” Ikem, the wine retailer, stated.
Information from Euromonitor Worldwide, a London-based market analysis firm, present that Nigeria’s wine consumption rose to 33.1 million in 2021, the best since 2015, from 32.0 million in 2020.
“Wine is rising in popularity in Nigeria 12 months on 12 months, growing volumes. Furthermore, main corporations equivalent to Distell had double-digit development in quantity phrases in Nigeria, with manufacturers equivalent to Chamdor (glowing wine) and 4th Avenue (nonetheless wine) performing strongly,” Christopher Day, a analysis analyst at Euromonitor Worldwide, stated.
