Princewill Ekwujuru

De-marketing, that, ugly, unhealthy practice which caused a lot of ripples within the banking industry last year, has reared its head again in Nigeria’s brewing industry which contributes over 28 per cent of Manufactured Value Added (MVA) and provides direct employment for millions of Nigerians.

Vanguard gathered that the de-marketing trend is unfolding between top bracket players in the industry, who control nearly 80 per cent of the market share and the fringe operators in the area of marketing and trade promotion.

Feelers from brewery industry operators indicated that the big players are quietly frustrating
the gradual but steady comeback, albeit growth of the smaller players in the area of pricing to push up sales volume through subtle threats to their distributors, salesmen and bartenders to stop stocking the products of the smaller players who they perceive as competitors.

The big players, who have recorded ample success in terms of product quality, price advantage, superb technical back-up, availability of ample financing and skillful personnel, by this act, are hell bent on creating an oligopolistic market in the brewing industry.

A major distributor from Ondo State lamented how a big player allegedly told them point blank to stop stocking a particular product of an up and coming brewery, with a threat that all trade incentives would be withdrawn if they defy the order.

“We are suprised at this development. The Nigerian drinks industry is one of the most dynamic, with beer the most popular drink by far, accounting for an estimated 90 per cent of the total volume of alcohol sold in the country. The top players take nearly 80 per cent of the market share, yet they still muffle the smaller ones out of business,” he lamented.

According to findings, a popular brewer reportedly went round Kaduna township on public address system last month discrediting  Kronebourg as fake in order to discourage the consumers from patronising the product, claiming that it was their former product, which they have discontinued with its production.

However, the Kronebourg brand actually belonged to a foreign investor who withdrew the franchise from the brewer on account of unresolved trade dispute and gave the same franchise to another manufacturer before the erstwhile producer embarked on a campaign of calumny.