Industry Report |Soft Drinks

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TABLE OF CONTENTS
ABOUT US ........................................................................................................................................................... 1
TABLE OF CONTENTS ..................................................................................................................................... 2
LIST OF FIGURES............................................................................................................................................... 4
LIST OF TABLES ................................................................................................................................................ 5
GLOSSARY OF TERMS & ACRONYMS ......................................................................................................... 6
SECTION 1: INTRODUCTION ........................................................................................................................ 8
FOREWORD ....................................................................................................................................................... 9
OBJECTIVES OF THE STUDY ..............................................................................................................................10
TARGET USERS ................................................................................................................................................10
SCOPE OF REPORT ...........................................................................................................................................10
OUR COVERAGE ..............................................................................................................................................11
SOURCES AND LIMITATIONS OF DATA ...........................................................................................................12
SECTION 2: OVERVIEW OF THE INDUSTRY .............................................................................................14
BACKGROUND .................................................................................................................................................15
REVIEW OF THE GLOBAL SOFT DRINKS INDUSTRY .........................................................................................15
SECTION 3: THE NIGERIAN SOFT DRINKS INDUSTRY .........................................................................22
HISTORICAL PERSPECTIVE ...............................................................................................................................23
MARKET STRUCTURE .......................................................................................................................................24
MAJOR INDUSTRY CHARACTERISTICS ............................................................................................................26
THE BUSINESS MODEL: KEY FEATURES OF THE INDUSTRYS OPERATIONS ....................................................29
MARKET SIZE...................................................................................................................................................36
COMPETITION ANALYSIS ................................................................................................................................38
BASES FOR COMPETITION................................................................................................................................41
KEY INDUSTRY COMPETITORS ........................................................................................................................42
KEY RISK AREAS..............................................................................................................................................47
SECTION 4: REGULATORY ENVIRONMENT ............................................................................................50
INDUSTRY REGULATORS .................................................................................................................................51
RECENT DEVELOPMENTS AND SHORT-TERM EXPECTATIONS IN REGULATION ............................................54
SECTION 5: REVIEW OF MARKET SEGMENTS .........................................................................................56
CARBONATED DRINKS ....................................................................................................................................57
JUICES ..............................................................................................................................................................61

Industry Report

Soft Drinks

Agusto & Co

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Agusto & Co Research

SECTION 6: INDUSTRY FINANCIAL CONDITION ..................................................................................64
BACKGROUND .................................................................................................................................................65
INDUSTRY ASSET PROFILE ...............................................................................................................................65
PROFITABILITY .................................................................................................................................................66
CASH FLOW .....................................................................................................................................................68
LEVERAGE........................................................................................................................................................69
OPERATING CYCLE & WORKING CAPITAL ....................................................................................................70
SUMMARY OF FINANCIAL CONDITION ............................................................................................................70
SECTION 7: SWOT ANALYSIS & OUTLOOK..............................................................................................72
STRENGTHS ......................................................................................................................................................73
WEAKNESSES ...................................................................................................................................................74
OPPORTUNITIES ...............................................................................................................................................75
THREATS ..........................................................................................................................................................76
SUMMARY & OUTLOOK................................................................................................................................78
APPENDIX .........................................................................................................................................................79
APPENDIX I - RATING DEFINITIONS ............................................................................................................80
APPENDIX II - INDUSTRY FINANCIAL SUMMARY ........................................................................................81

Industry Report

Soft Drinks

Agusto & Co

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Agusto & Co Research

LIST OF FIGURES
Figure 1 - Scope of report..................................................................................................................................11
Figure 2 - Comparative consumption growth rates across major global soft drinks markets ................16
Figure 3 - Global consumption of soft drinks by type (2012) ......................................................................16
Figure 4 - Global demand for carbonated soft drinks by world regions ....................................................17
Figure 5 - Global soft drinks industry business model .................................................................................17
Figure 6 - Global soft drinks output by type of packaging material used .................................................18
Figure 7 - Estimated market share of global soft drinks majors ..................................................................19
Figure 8 - Product classification .......................................................................................................................24
Figure 9 - Estimated industry sales volume by market segment ................................................................25
Figure 10 - Industry structure ..........................................................................................................................25
Figure 11 - Competitive landscape across industry segments.....................................................................27
Figure 12 - Domestic industry business cycle ................................................................................................30
Figure 13 - Production cost base of an average soft drink manufacturer ..................................................32
Figure 14 - Estimated share of depots amongst major players....................................................................34
Figure 15 - Product distribution flow for a typical soft drinks manufacturer ...........................................34
Figure 16 - Size of the Industrys revenues ....................................................................................................36
Figure 17 - Industry turnover by market segment ........................................................................................36
Figure 18 - Porters five forces analysis of the competitive landscape .......................................................38
Figure 19 - Estimated annual CSD sales volumes in Nigeria (2009 - 2015f) ..............................................57
Figure 20 Estimated annual CSD sales values in Nigeria (2009 - 2015f) .................................................57
Figure 21 - Estimated market shares within the Nigerian CSD segment (2012) .......................................58
Figure 22 Estimated annual demand for Juices in Nigeria (2009 - 2015f) ...............................................61
Figure 23 Structure of Industry asset base ..................................................................................................65
Figure 24 - Trend in estimated industry turnover and sales growth..........................................................67
Figure 25 - Trend in industry margins ............................................................................................................67
Figure 26 - Trend in operating expenses and profits ....................................................................................68
Figure 27 - Estimated profitability indicators ................................................................................................68
Figure 28 - Industry cashflow profile ..............................................................................................................69
Figure 29 - Indicators of leverage ....................................................................................................................69
Figure 30 SWOT of the Nigerian Soft Drinks Industry .............................................................................73

Industry Report

Soft Drinks

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Agusto & Co Research

LIST OF TABLES
Table 1: Major industry players by segment ..................................................................................................24
Table 2 - Calories, Nutrient and Ingredient content of Major Types of Soft Drinks ................................32
Table 3 - Soft drinks produced or distributed by NBC* ...............................................................................42
Table 4 - Soft drinks produced or distributed by Seven-Up* ......................................................................43
Table 5 - Soft drinks produced or distributed by TLCC ...............................................................................44
Table 6 - Soft drinks produced or distributed by DFL* ................................................................................44
Table 7 - Soft drinks produced or distributed by CHI Limited* .................................................................45
Table 8 - Soft drinks produced or distributed by NB Plc*............................................................................45
Table 9 - Soft drinks produced or distributed by GSK* ................................................................................46
Table 10 - Soft drinks produced or distributed by other key industry players .........................................46
Table 11 - Industry Snapshot............................................................................................................................65

Industry Report

Soft Drinks

Agusto & Co

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