Mon. Jun 27th, 2022

How to start Wholesale Beer Business in Nigeria

Nigerian’s love their beer especially people from East, West, Part of the Northern and Southern regions of the country. The beverage have seen an exponential increase in consumption each year.

Among one of the favorite pastimes is socializing with friends with a bottle of chilled beer. Making the industry one of the most lucrative ventures in Nigeria.

Huge conglomerates have discovered this industry raking in billions of naira annually. The business is very competitive especially in the bottling of beer, however their is room for wholesalers.

Therefore if you are looking for a highly lucrative ventures then start wholesale beer business in Nigeria.

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Wholesale Beer Business in Nigeria

What is wholesale beer business?

Wholesale Beer Business involves buying beer in bulk from brewers, distribution and sales to retailers. The retailer then sell to establishments that sell directly to customers.

Who consume beer in Nigeria?

Major consumers of beer in Nigeria are people aged 18 to 65 making it an attractive venture. Majority of consumers are found in the eastern and western part of Nigeria. Beer is drank at weddings, burials, birthday parties, anniversaries, meetngs and social events.

Where beer is consumed

  1. Bars
  2. Restaurants
  3. Hotels
  4. Weddings
  5. Anniversaries
  6. Birthday
  7. Social events
  8. Meetings
  9. Burials
  10. Home

Top breweries in Nigeria

Top breweries in Nigeria have a stronghold on the industry. Top brewers are Sona breweries PLC ( Wilfort Dark Ale), Pabod breweries (Hero), Guinness Nigeria, International breweries Trophy, Nigeria breweries (Star)

  1. Sona breweries PLC ( Wilfort Dark Ale)
  2. Pabod breweries (Hero)
  3. Guinness Nigeria
  4. International breweries Trophy
  5. Nigeria breweries (Star)
  6. Intafac Castle Milk Stout

How much to start wholesale Beer Business in Nigeria

Wholesale Beer Business is capital intensive therefore adequate funding is needed. You need from N5 million to N 10 million naira. The cost goes into distributor license, truck, warehouse, purchase of stock, insurance, staff wages.

List of beer in Nigeria

There is a huge list of beer in Nigeria, we have the Williams Dark Ale (Nigeria), Wilfort Dark Ale (Nigeria), Star Lager (Nigeria), Gulder Lager (Nigeria) and Trophy Premium Quality Lager Beer.

Others are Harp Premium Lager (Nigeria), Hero Premium Lager (Nigeria), 33 Export (Nigeria) and Goldberg Premium Lager.

More top quality beer are Satzenbrau Premier Pilsner (Nigeria), Life – Continental Lager, Turbo King (Nigeria) Beer, Guinness Extra Smooth (Nigeria), Legend Extra Stout (Nigeria), Guinness Foreign Extra Stout (Nigeria).

Types of Nigerian beer

  1. Williams Dark Ale (Nigeria)
  2. Wilfort Dark Ale (Nigeria)
  3. Star Lager (Nigeria)
  4. Gulder Lager (Nigeria)
  5. Trophy Premium Quality Lager Bee
  6. rHarp Premium Lager (Nigeria)
  7. Hero Premium Lager (Nigeria)
  8. 33 Export (Nigeria)
  9. Goldberg Premium Lager Beer
  10. Satzenbrau Premier Pilsner (Nigeria)
  11. Life – Continental Lager
  12. Turbo King (Nigeria) Beer
  13. Guinness Extra Smooth (Nigeria)
  14. Legend Extra Stout (Nigeria)
  15. Guinness Foreign Extra Stout (Nigeria)

How to start Wholesale Beer Business in Nigeria

The most challenging aspect of the business is securing a wholesale distributorship from the brewery. This is because regions are segmented to a particular wholesaler, therefore getting approved requires having distributorship license in new regions.

The second major challenge is paying the recommended amount to secure a distributorship, other challenges are having the recommended facility like huge warehouse and large distributor trucks.

Step 1 Learn the trade

To learn the trade you need to know the requirements needed to become a wholesaler. First determine if you want to be a major distributor, wholesaler or retailer.

Major beer distributor

A major distributor needs significant investment, warehouse and location not covered by another distributor. The warehouse should have good access road for your tricks including a loading area. At this level entry amount is N 25 million naira.

Beer wholesaler

A beer wholesaler buys in bulk from the major distributor. They don’t have a line of credit like the major distributor and only stock what they can purchase.

Distributor

Distributors buy from wholesaler and sell to smaller retail outfits, hotels, beer parlor or restaurants. They need a shop, small bus and keep proper inventory.

Step 2 write a business plan

The next step is to write a wholesale beer business plan. Then carry out a feasibility study and survey. The survey covers best locations, market trends, beer brands to stock.

Step 3 Register the business

Register the business as an enterprise or limited liability company. This will be useful during application process with brewers or with your account and tax related matters.

Step 4 Location

While setting up the wholesale beer business it is important to find a good location. Make sure the location has good road network, has heavy human and vehicular traffic. A good location is beside a busy road or popular drinks market.

Step 5 get a warehouse

There are a few options for a warehouse, you can rent, build or purchase one. Although renting one is cost effective, however you are subject to the landlord. If you want to rent make sure it is a long lease. Things to consider in the warehouse is adequate space, security, closeness to customers, utility, goad road network.

Step 6 Type of beer to sell

There is no point stocking products no one drinks. Conduct a survey of the most popular brands in the area. Stock only fast moving popular brands for quick turnover.

Step 7 secure funding

Funding is the most important aspect of the business. Secure founding through target savings, bank loans, venture capitalists, partnership, grants, or find a core investor.

Step 8 get a truck

One of the main equipment is a truck and for major distributors a forklift. There are many ways to achieve this like buying a truck, leasing one. Many brewers also provide trucks for their major distributors.

Step 9 hire staff

Staff you need are truck drivers, busboys, accountant, store manager, customer service officer.

Step 10 apply for distributorship license

This is the hardest part of the process. Once you are ready apply to the brewery for a distributorship license
The brewer will provide the conditions for partnership like initial amount needed, warehouse location, customer base.

Inventory

Because the business is a bulk enterprise you need to stay abreast of the stock. Therefore inventory management will make or break the business.

Marketing

Most brewers have already invested in promoting their brand. All a distributor needs is to buildup a clientele list for supply. Once you have a network of retailers you are in business.

By Femi

webmaster with passion for good content