Matthew Goodman
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Sweat is dripping from every pore of the raucous crowd packed into the Aquatic Hotels, a central Lagos venue converted for the night into a television studio, but they don’t seem to care. They’re too busy whooping it up for a string of dance troupes, such as Street Hood and X-Fellaz, battling for the 2m naira (£8,300) prize in the Street Dance Africa tournament.
In the midst of all the bright lights and heat, the panel of judges of this Nigerian take on Britain’s Got Talent conspicuously swig from bottles of Malta Guinness in an effort to keep cool. So, too, do many of the audience, who swarm on stage at the end to congratulate the eventual winners.
That there is so much of this liquid refreshment to go round is deliberate — Malta, a soft drink made by the Nigerian company that brews Guinness, is creator and sponsor of the event.
Marketing initiatives such as the Street Dance show have helped a sales surge of the drink that in turn has boosted turnover at Guinness Nigeria, a unit of the British drinks giant Diageo that has become a key part of its global empire.
The west African country sells more Guinness than any other country in the world except Britain, and is one of few markets enjoying significant growth. The success of the brand in Africa is one reason why talk of a disposal of Guinness by Diageo has recently been quelled.
Sales are dropping in many places: the quantity of Guinness consumed worldwide fell 1% in the first half of the last financial year. In Europe, the brand fell 8%; in North America, volumes dropped 7%. In Nigeria, they grew 13%.
These days, Nigeria drinks more Guinness than Ireland and observers think it is only a matter of time before it overtakes the UK as the world’s biggest consumer of the black stuff. Nigerians drink 15.8m pints of Guinness — 1.1m more than the Irish and about 5m fewer than the British.
As the brand gears up for its 250th anniversary celebrations this year, Nigerians will see plenty of reason to rejoice. “If you tell anyone from Nigeria that it’s not a Nigerian company but an Irish one, you might have some serious issues,” said Tunde Savage, chairman of Guinness Nigeria.
It may surprise some that Nigeria has become key for executives of the British parent (it owns a controlling 53.8% stake in Guinness Nigeria, which has its own local listing) but the brand has a strong heritage there. It has been exported to Africa since 1827, when Sierra Leone received consignments. The first brewery built outside Britain or Ireland was in Lagos, in 1962.
Maintaining upward sales will be far from straightforward, however, when so many basics, such as power supply and clean water, are available only to those privileged to afford them. Most drinking is done in 60,000-odd bars rather than at home but, as a Guinness executive admits, the lack of security means that many people are simply too afraid to go out for the evening. The company is trying to address this by introducing cans — bottles are the norm — to encourage take-home sales.
“The major constraint is infrastructure,” said Savage. Roads are in need of repair and “a lot of investment needs to be put right”.
Ultimately, a lack of state investment means the private sector picks up the tab. Banjo Onanubi, chief executive of Cryslad, a Lagos beer distributor, said: “Roads everywhere are bad and it’s worse in the rainy season. I’ve invested millions on this road.” Lack of a regular electricity supply is also a problem. Guinness breweries have their own generators. Many citizens are not so fortunate — and neither are the bars.
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