The impact of the COVID-19 pandemic is expected to affect the volume of wine sales in Nigeria by 33 percent in 2020.
According to a wine report by Euromonitor, a global market intelligence platform, the expected decline in wine sales compares to an expected 8 percent rise forecast for 2020 during research conducted in May 2019, that is. before the spread of COVID-19.
“Most types of wine are set to suffer steep double-digit total volume declines in 2020, largely driven by the closures and restrictions placed on on-trade establishments (a term typically used in reference to sales of alcoholic drinks sold through bars, restaurants, cafés, hotels and other catering establishments) as part of the measures to combat COVID-19,” the report stated.
The Public Health measures aimed at limiting the spread of COVID-19 have largely influenced the various aspects of social human interaction, as well as all sectors of the economy.
The wine industry which is part of the hospitality sector recorded the worst half-year performance in history as hoteliers, brand and franchise owners, and destination managers decry that the industry lost over N50 billion in the first half of 2020.
“The decline in sales is expected due to the lockdown of events to control COVID-19,” Ayorinde Akinloye, a consumer analyst at CSL Stockbrokers said.
Before the pandemic, there was a growing preference for wine against champagne by consumers due to the weak purchasing power in the economy. Consumers shifted away from champagne due to its expensive nature and went for cheaper ones like wine.
According to data compiled by Comité Champagne, a trade association that tracks the volume and value of exported wine from France, Nigeria’s consumption of champagne imported from France dropped by 24 per cent in the past 5 years since 2014.
The champagne brands on average are sold for N25, 000 since they are majorly imported from France. While a bottle of red wine can go as low as N500.
Experts believe that wine sales will recover after the pandemic but could see meager growth in 2022, followed by accelerated performances over the remainder of the forecast period.
