According to the company, innovation rate has continuously contributed to its revenue growth from 1.5 per cent in 2011; 6 per cent in 2012; 9.8 per cent in 2013 to 16 per cent in 2014. It also stated that the merger with Consolidated Breweries also strengthened its market dominance.
Speaking at the company pre-Annual General Meeting in Lagos, the Managing Director, Mr. Nicolaas Vervelde, said the company increased its portfolio of brands in 2014 with the addition of Ace Passion in addition to two line extension of the Star brand, Star Lite and Star Radler.
His words: “In 2014 as a result with merger with Consolidated Breweries, 33 Export lager beer, William dark ale, Turbo King dark ale, more lager beer and two malt drinks, Maltex and Hi Malt together with Breezer, a blend of rum and fruits became part of the company’s products.
Though the company recorded low growth in the 2014 financial year, it gained overall market share in Extra Larger Stout and Malt.
“We were successful in the year due to large portfolio of stout and malt. We removed unnecessary costs, reducing logistics cost and achieved cost leadership”, he said.
When quizzed on the company’s foreign exposure, Mr Vervelde explained that for decades, the company has been sourcing its raw materials locally. He stressed that there are over 250,000 Nigerian farmers that are developing sorghum varieties, which indirectly and directly generates employments.
“The company has entered into supply agreements with local cassava starch processors whose activities have impacted positively in the communities where they operate.
“We have off take arrangements with a multinational company that has huge investment in sugarcane value chain. This is aimed at replacing imported sugar in our recipe with a local substitute,” he asserted.
In line with its commitment of ‘winning with Nigerians’, the company kicked off its 2015 innovation with Ace Root.
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