NIGERIA – Nigerian Breweries Limited has expanded its product portfolio with the launch of a new malt-infused energy drink dubbed Zagg.
The new non-alcoholic drink, is created for consumers with an active lifestyle, highlighted the total-beverage company.
“Zagg was brewed to help the average Nigerian keep up with the demands of everyday life. Regardless of our professions, fields and interests, we all engage in high-energy activities, whether mental or physical,” said Elohor Olumide-Awe, the brand’s representative and Portfolio Manager, Non-Alcoholic brands, Nigerian Breweries PLC.
Beyond being an energy booster, the drink provides the goodness of malt, giving it a refreshing and natural taste in comparison to most regular energy drinks with artificial flavours.
Launch of the new drink follows the debut of a malt-based energy drink by its sister company Heineken Ethiopia dubbed Bertat.
The Heineken energy malt drink is a proven concept and recipe that has already been successfully launched in other African markets in recent years as it pursues to offer two zero-alcohol options in the majority of its markets by 2023.
Meanwhile, Nigerian Breweries has reported a 27% rise in revenue in the 9 months ended 30 Sept 2022.
Its revenue during the period under review totalled N393.336 billion (US$888.8m), a jump from the previous year’s N309.22 billion (US$698.8m).
The top-line performance was driven by pricing; however, it was offset by higher input cost arising from increased rate of inflation and higher energy costs.
Analysis of the results revealed that cost of sales rose significantly by 20.2% from N198.75 billion (US$449.15m) in 2021 to N238.92 billion (US$539.93m) during the period under review in 2022.
Marketing, Distribution, and Administration expenses also grew by 40.1% from N86.33 billion (US$195.1m) in 2021 to N120.95 billion (US$273.33m) in 2022.
Apart from volume and cost challenges which affected business performance negatively in Q3, 2022, there was increased pressure on consumer disposable income as well as heavy rains and flooding.
Nevertheless, the company performed relatively well in the period led by strong premium portfolio of Heineken, Tiger and Desperados.
Despite the volume and cost challenges in the third quarter, the strong performance recorded in the first half of the year ensured that Operating Profit grew by 44% while Profit after Tax went up 80%.
While being cautious about the development of input costs and consumer demand in the remaining period of 2022, the company assured its stakeholder it is well positioned to take advantage of any upswing in the market and maintain its leadership position.