The alcoholic drinks sector in Cameroon had a difficult 2024, grappling with inflation-driven cost pressures, higher excise taxes, unapproved price adjustments, and frequent power outages that severely disrupted supply chains, and pushed up retail prices. These factors combined to depress total volume sales and heightened operational insecurity for manufacturers. The removal of the 10% excise tax rebate on beers with no more than 5.5% alcohol in the 2024 Finance Law significantly increased production costs, and, for the third consecutive year, the Minister of Commerce rejected price revision proposals from the Cameroon Alcohol Producers Association (CAPA), placing additional financial strain on producers amid soaring costs for raw materials, fuel and electricity. Wine and spirits imports stagnated following a decline during the previous year. Meanwhile, ongoing power outages further reduced production capacity and damaged manufacturing equipment, with replacement parts not always readily available.
The decline in beer market total volume sales was attributed to significant supply disruptions at various points during the year. At the heart of the disruptions in production and supply were persistent power cuts, which damaged brewers’ equipment and severely impacted local suppliers. Additionally, the refusal of the Ministry of Commerce to ratify the proposed price increase of XAF100 for all beers, the elimination of the 10% rebate for beers with no more than 5.5% alcohol in the 2024 Finance Law, and escalating energy and transportation costs compounded the challenges facing brewers. Many owners of drinking establishments unilaterally increased pricing by between XAF50 and XAF100 per bottle.
On 28 March 2023, the body responsible for competition matters in the CEMAC zone (comprising Cameroon, the Republic of Congo, Gabon, Chad, the Central African Republic, and Equatorial Guinea) approved the acquisition of Guinness Cameroon, a subsidiary of the British group Diageo, by the French group Castel. Castel already controls the Société Anonyme des Boissons du Cameroun (SABC), and this XAF300 billion acquisition—which had been agreed the previous year—means SABC now controls over 80% of the beer market in Cameroon, cementing its dominance in the country’s alcoholic drinks sector. Moreover, following the bankruptcy of BVS SA in 2022, SABC took over the marketing and distribution of the Pernod Ricard range in Cameroon. This partnership was officially announced in the first half of 2023, further expanding SABC’s already extensive portfolio.
Food/Drink/Tobacco specialists dominate the distribution of alcoholic drinks due to their sheer number and proximity to consumers in both urban and rural areas. There are currently over 40,000 bars and points of sale for alcoholic drinks in Cameroon, according to SABC. Their strategic location drives high foot traffic and sales.
Premiumisation and a burgeoning cocktail culture are driving growth in on-trade sales for spirits. For many consumers, these beverages symbolise social status, a means of showcasing a desirable lifestyle on social media, and a way to attract attention within the hype-driven atmosphere cultivated by nightclubs and lounges. Cognacs such as Hennessy and Martell have gained significant traction. In terms of wine, Champagnes like Moët, Veuve Clicquot, and Dom Pérignon remain extremely popular in the on-trade. Meanwhile, the emerging popularity of cocktail culture has boosted demand for gin, vodka, and dark rum, as these are the most commonly used spirits by mixologists.
Total volume sales of alcoholic drinks will rebound in 2025 and increase over the forecast period as a whole, in contrast to the decline seen in the review period. SABC's XAF200 billion investment in beer production and packaging, along with UCB SA's 20% expansion plan by 2025, will address supply disruptions and increase the availability of beer and RTDs. Meanwhile, the ongoing trend of premiumisation will continue to drive spirits demand, with these beverages increasingly symbolising status and luxury. Despite a decline in wine imports in 2023 and stagnant imports in 2024, total volume sales will rebound in the forecast period.
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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
See all of our definitionsThis report originates from Passport, our Alcoholic Drinks research and analysis database.
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