Table of Contents

Alcoholic Drinks in Cameroon – Industry Overview

EXECUTIVE SUMMARY
Alcoholic drinks consumption continues to rise in Cameroon
Leading players invest heavily in corporate social responsibility programmes
Brasseries du Cameroun remains the dominant market player
Personal safety concerns and competitive prices bolster off-trade consumption
Outlook for alcoholic drinks over 2011-2016 remains favourable

MARKET BACKGROUND
Legislation

TAXATION AND DUTY LEVIES
Table 1 Taxation and Duty Levies on Alcoholic Drinks 2011
Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2011
Table 3 Selling Margin of a Typical Beer Brand 2011
Table 4 Selling Margin of a Typical Imported Wine Brand 2011
Table 5 Selling Margin of a Typical Imported Spirits Brand 2011

OPERATING ENVIRONMENT
Contraband/Parallel Trade
Duty Free
Cross-border/private imports

KEY NEW PRODUCT LAUNCHES

MARKET INDICATORS
Table 6 Retail Consumer Expenditure on Alcoholic Drinks 2006-2011

MARKET DATA
Table 7 Sales of Alcoholic Drinks by Category: Total Volume 2006-2011
Table 8 Sales of Alcoholic Drinks by Category: Total Value 2006-2011
Table 9 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2006-2011
Table 10 Sales of Alcoholic Drinks by Category: % Total Value Growth 2006-2011
Table 11 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Volume 2011
Table 12 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Value 2011
Table 13 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Volume 2011
Table 14 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Value 2011
Table 15 Company Shares of Alcoholic Drinks by Global Brand Owner 2007-2011
Table 16 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2006-2011
Table 17 Off-trade Sales of Alcoholic Drinks by Category and Distribution Format: % Volume Analysis 2011
Table 18 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2011-2016
Table 19 Forecast Sales of Alcoholic Drinks by Category: Total Value 2011-2016
Table 20 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 2011-2016
Table 21 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2011-2016

DEFINITIONS

SOURCES
Summary 1 Research Sources

Alcoholic Drinks in Cameroon – Company Profiles

Brasseries du Cameroun in Alcoholic Drinks (Cameroon)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Brasseries du Cameroun: Competitive Position 2011

Fermencam SA in Alcoholic Drinks (Cameroon)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING

Guinness Cameroon SA in Alcoholic Drinks (Cameroon)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 9 Guinness Cameroon SA: Competitive Position 2011

Société Commerciale d’Importation – Négoce et de Transit (SOCCINT) in Alcoholic Drinks (Cameroon)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING

Beer in Cameroon – Category Analysis

HEADLINES

TRENDS
The sponsorship of charitable and corporate social responsibility programmes proved an increasingly important competitive tool for major beer companies in 2011. Brasseries du Cameroun, for instance, relaunched its famous ‘Top Cup Summer Holidays’ youth soccer tournament, while also offering scholarships to 1,000 primary school children. Similarly, Guinness Cameroon increased its support for local football teams and festivals, while Union Camerounaise de Brasseries (UCB) provided benches and classrooms for some primary schools in the Western region. UCB also sponsored a microcredit programme that provided people with small loans to start their own businesses.

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE
Brasseries du Cameroun continued to dominate beer in 2011, claiming a total volume sales share of 85%. With an extensive portfolio that includes popular brands such as Castel Beer, 33 Export, Mutzig, Amstel and Tuborg Gold Label, the company was the overwhelming leader in domestic premium lager and domestic standard lager. It also ranked second in imported premium lager, stout and non-alcoholic beer. All of the company’s beer brands are widely distributed across Cameroon, and most benefit from consistently strong marketing support. In 2011, the company acquired a new fleet of vans to strengthen distribution of its beer brands in a number of regions, including the southwest of Cameroon.

PROSPECTS
The outlook for beer remains favourable, with total volume and constant value sales expected to grow at respective CAGRs of 4% and 8% over the forecast period. Drinking beer with friends and acquaintances is one of the most popular means of socialising among all demographic groups in Cameroon. This is particularly true among lower income consumers, who make up the majority of the population. Aside from this underlying trend, new launches, improvements in distribution and intensive promotional activities will also help to sustain the positive development of the wider beer category. It is also likely that economic development will help to increase beer consumption. As a result, total volume and constant value sales growth rates are expected to be slightly stronger than those recorded during the review period.

CATEGORY BACKGROUND
Lager price band methodology
Summary 11 Lager by Price Band 2011

CATEGORY DATA

Table 22 Sales of Beer by Category: Total Volume 2006-2011
Table 23 Sales of Beer by Category: Total Value 2006-2011
Table 24 Sales of Beer by Category: % Total Volume Growth 2006-2011
Table 25 Sales of Beer by Category: % Total Value Growth 2006-2011
Table 26 Sales of Beer by On-trade vs Off-trade Split: Volume 2006-2011
Table 27 Sales of Beer by On-trade vs Off-trade Split: Value 2006-2011
Table 28 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 29 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 30 Beer: Production, Imports and Exports: Total Volume 2005-2010
Table 31 Company Shares of Beer by National Brand Owner 2007-2011
Table 32 Company Shares of Beer by Global Brand Owner 2007-2011
Table 33 Brand Shares of Beer 2008-2011
Table 34 Forecast Sales of Beer by Category: Total Volume 2011-2016
Table 35 Forecast Sales of Beer by Category: Total Value 2011-2016
Table 36 Forecast Sales of Beer by Category: % Total Volume Growth 2011-2016
Table 37 Forecast Sales of Beer by Category: % Total Value Growth 2011-2016

Cider/Perry in Cameroon – Category Analysis

TRENDS
Distribution and consumption of cider/perry in Cameroon remained negligible in 2011. There is no real tradition of producing or consuming cider/perry in the country, and it is unlikely that this category will emerge to play a more visible role in the wider alcoholic drinks market over the forecast period.

RTDs/High-Strength Premixes in Cameroon – Category Analysis

HEADLINES

TRENDS
In 2011, leading RTDs players continued to invest in event-based promotional activities to strengthen demand for their products among key target groups such as younger women and university students. For example, Brasseries du Cameroun and Guinness Cameroon both organised promotional events to coincide with International Women’s Day (March 8th), as well as games and competitions on university campuses. Guinness Cameroon was particularly active in promoting Smirnoff Ice on university campuses at weekends. At the same time, both of these companies used fleets of sales and promotion vans to improve distribution of their brands across Cameroon. Such activities helped to ensure that growth in total RTDs volume sales was up on 2010. Growth in total current value sales meanwhile was marginally slower than in 2010, mainly due to more aggressive price competition in on-trade channels. Moreover, due to increasing maturity and stiff competition from other types of alcoholic drinks, total volume and current value growth rates for RTDS fell below the respective CAGRs for the entire review period.

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE
Brasseries du Cameroun maintained its dominant position in RTDs in 2011, accounting for 69% of total volume sales. This dominance was mainly due to the popularity of its Whisky Black brand, which claimed a total volume share of 60%. The company also offered the Gin Tonic brand, which finished third overall with a 9% volume share. Both brands benefit from strong promotional support and the company’s extensive distribution reach. Both are primarily aimed at female drinkers and university students. Guinness Cameroon was the second leading RTDs player overall, claiming a total volume share of 30% with its Gordon’s Spark and Smirnoff Ice brands. Again, Guinness Cameroon’s strengths in the areas of distribution and promotion, built upon its activities in other alcoholic drinks categories, underpinned the success of its RTDs brands.

PROSPECTS
The outlook for RTDs remains favourable, with total volume and constant value sales expected to grow at CAGRs of 3% and 4% respectively over the forecast period. Aside from economic improvements in Cameroon, demand will be bolstered by new launches, intensive marketing activities and the wider distribution of top brands like Whisky Black and Smirnoff Ice, particularly outside of major cities and towns. Moreover, the comparatively high alcohol content and sweet taste of RTDs should help them to continue gaining popularity among the core target demographic of young adults. All of this should offset increasing maturity and ensure that total volume and constant value sales growth rates for RTDs are slightly stronger than those recorded during the review period.

CATEGORY DATA

Table 38 Sales of RTDS/High-strength Premixes by Category: Total Volume 2006-2011
Table 39 Sales of RTDS/High-strength Premixes by Category: Total Value 2006-2011
Table 40 Sales of RTDS/High-strength Premixes by Category: % Total Volume Growth 2006-2011
Table 41 Sales of RTDS/High-strength Premixes by Category: % Total Value Growth 2006-2011
Table 42 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2006-2011
Table 43 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2006-2011
Table 44 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2006-2011
Table 45 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2006-2011
Table 46 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2007-2011
Table 47 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2007-2011
Table 48 Brand Shares of RTDS/High-strength Premixes 2008-2011
Table 49 Forecast Sales of RTDS/High-strength Premixes by Category: Total Volume 2011-2016
Table 50 Forecast Sales of RTDS/High-strength Premixes by Category: Total Value 2011-2016
Table 51 Forecast Sales of RTDS/High-strength Premixes by Category: % Total Volume Growth 2011-2016
Table 52 Forecast Sales of RTDS/High-strength Premixes by Category: % Total Value Growth 2011-2016

Spirits in Cameroon – Category Analysis

HEADLINES

TRENDS
In 2011, major domestic spirits producers continued to introduce smaller pack sizes that cost less than CFAF150. Distribution of these smaller pack sizes was increased in on-trade channels, with some companies using mobile sales vehicles to visit busy beer parlours and similar establishments every day and sell directly to consumers. Together with new launches and sustained investment in advertising, this practice helped to ensure that growth in total spirits volume sales was up on 2010, and also faster than the CAGR for the entire review period. Due to increasing price competition, particularly at the on-trade level, growth in total spirits current value sales was slightly slower than in 2010, though it still exceeded the 5-year average.

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE
Diageo remained the overall leader in spirits in 2011, claiming a total volume sales share of 12%. With a portfolio made up of high quality imported brands like Johnnie Walker, J&B, Baileys Irish Cream and Gordon’s Dry, the company held leading positions in whiskies and gin, and ranked second in liqueurs. Thanks to the extensive reach of Guinness Cameroon, its main local distributor, most of Diageo’s spirits brands were available in on- and off-trade outlets across the country. Strong marketing support for its main brands also helped the company to maintain its overall lead in spirits. Due to their comparatively high prices, however, demand for the company’s spirits brands was largely restricted to middle and higher income consumers in urban areas.

PROSPECTS
Spirits will continue to develop positively over the forecast period, with total volume and constant value sales expected to grow at CAGRs of 3% and 5% respectively. Aside from economic improvements in Cameroon, spirits consumption will be bolstered by new launches, particularly of standard and economy brands (including higher quality imports), and improvements in distribution, especially in rural areas. Sustained investment in advertising and more aggressive price competition will also drive demand, as will the strong tradition of serving spirits to guests at funerals, weddings and other social gatherings. Together, these various factors should ensure that total volume and constant value sales growth rates exceed those recorded during the review period.

CATEGORY DATA

Table 53 Sales of Spirits by Category: Total Volume 2006-2011
Table 54 Sales of Spirits by Category: Total Value 2006-2011
Table 55 Sales of Spirits by Category: % Total Volume Growth 2006-2011
Table 56 Sales of Spirits by Category: % Total Value Growth 2006-2011
Table 57 Sales of Spirits by On-trade vs Off-trade Split: Volume 2006-2011
Table 58 Sales of Spirits by On-trade vs Off-trade Split: Value 2006-2011
Table 59 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 60 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 61 Company Shares of Spirits by National Brand Owner 2007-2011
Table 62 Company Shares of Spirits by Global Brand Owner 2007-2011
Table 63 Brand Shares of Spirits 2008-2011
Table 64 Forecast Sales of Spirits by Category: Total Volume 2011-2016
Table 65 Forecast Sales of Spirits by Category: Total Value 2011-2016
Table 66 Forecast Sales of Spirits by Category: % Total Volume Growth 2011-2016
Table 67 Forecast Sales of Spirits by Category: % Total Value Growth 2011-2016

Wine in Cameroon – Category Analysis

HEADLINES

TRENDS
Historically, traditional alcoholic beverages such as wine raffia or palm liquor made ??from corn were served at social gatherings like parties, weddings and funerals in Cameroon. In recent years, however, it has become increasingly fashionable to serve wine to guests at such occasions. This is particularly the case with middle income consumers, for whom wine is a kind of status symbol or an aspirational choice. During the review period, producers and importers sought to capitalise on this trend by running advertising campaigns that depicted wine consumption as a sign of sophistication and success. Similarly, SOFAVINC sought to tap into the strong association between wine and celebratory occasions by offering brides and bridegrooms the opportunity to have their pictures printed on labels of its wine brands that were served at their weddings. The company also introduced 250ml pack sizes for all of its main wine brands in an effort to boost on-trade consumption.

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE
Société de Fabrication de Vin du Cameroun (SOFAVINC) was the leading wine player in Cameroon in terms of total volume sales in 2011. The company’s leadership was largely built upon the success of its three main brands: Vinosol, Casanova and Baron de Madrid. Costing around CFAF750-1,000 per litre, these brands are substantially cheaper than most imported wine products, which makes them very popular among lower income consumers. The fact that they are all available in small pack sizes of 250ml and 500ml further strengthens their economical positioning. During the review period, these smaller pack sizes played a key role in boosting on-trade volume sales of all three brands.

PROSPECTS
The outlook for wine in Cameroon remains favourable, with robust growth in total volume and constant value sales predicted for the forecast period. While volume and constant value growth rates will be bolstered as the entire category continues to emerge from a relatively low base, other factors will also drive demand. For example, advertising campaigns that associate wine consumption with sophistication will continue to draw middle and higher income consumers into the category. For the same reason, more and more low income consumers will opt for wine when it comes to special occasions like weddings, funerals and other social gatherings. Better education about different wine varieties and brands will also have a positive impact on demand, as will improvements in distribution, the growing availability of smaller pack sizes and the importation of more New World wines from countries like Chile and South Africa. Together with economic improvements in Cameroon, these trends should ensure that total wine volume and constant value sales grow faster than they did during the review period.

CATEGORY DATA

Table 68 Sales of Wine by Category: Total Volume 2006-2011
Table 69 Sales of Wine by Category: Total Value 2006-2011
Table 70 Sales of Wine by Category: % Total Volume Growth 2006-2011
Table 71 Sales of Wine by Category: % Total Value Growth 2006-2011
Table 72 Sales of Wine by On-trade vs Off-trade Split: Volume 2006-2011
Table 73 Sales of Wine by On-trade vs Off-trade Split: Value 2006-2011
Table 74 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 75 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 76 Forecast Sales of Wine by Category: Total Volume 2011-2016
Table 77 Forecast Sales of Wine by Category: Total Value 2011-2016
Table 78 Forecast Sales of Wine by Category: % Total Volume Growth 2011-2016
Table 79 Forecast Sales of Wine by Category: % Total Value Growth 2011-2016