Nigerian Breweries

The idea to establish a brewery in Lagos was first promoted by Frank Samuel of UAC prior to World War II. But it was not until the war ended that concrete steps were taken to kick start such a project.[3] Market leaders in the sector were all imported brands with the absence of a locally produced beer. UAC did not have a technical history in beer making leading the firm to enter into a technical agreement with Heineken, the brewery project also brought in investments from other merchandise companies in Nigeria including John Holt, GBO, SCOA, CFAO and UTC who all took some equity interest in the new company.[5] Construction of the brewery began at Iganmu, Lagos in 1947 and was completed in 1949. After completion, a major hurdle of NBL was how the new brand can gain acceptability among beer drinkers in the country and how to make it the brand the preferred beer of choice. Another vexing issue, was how to transport the product to consumers around the country.[3] To gain acceptability, NBL utilized consumer market research to understand the demands of the market and developed a marketing strategy around STAR Lager that used advertisements to show a link between drinking beer and modernity.[5] One of the advertising themes was to depict STAR beer as a quality product produced locally, engaging consumers to buy made in Nigeria beer.[3] It engaged the services of sister outfit, Lintas to produce its advertisements and was one of the early companies to use sophisticated market research skills and to heavily advertise a Nigerian brand using[6] both outdoor, print and television outlets. Between 1950 and 1960, beer consumption increased in Nigeria and NBL increased its market share.[5] Star attained market leadership in 1960 which created a need to build more factories in Nigeria. To get products to consumers, the company gave rights to sell its brand to select distributors and built depots at strategic locations within the country. In the 1970s, it created a motorised and national sales team.

In addition, NBL introduced assorted non-alcoholic mineral and flavored drinks under Rainbow brand that included, Krola, Tip Top Tonic Water and Sundowner soda water. It also introduced Gulder into the market and acquired rights to market Schweppes bitter lemon in the country. In 1972, it sold its non-alcoholic drink franchise.[3]

In the 1980s, NBL gradually increased its market share of the alcoholic beverage market at the expense of smaller breweries. In 1988, NBL facilities had to undergo a conversion process when the government banned importation of imported barley. The firm employed Heineken's technical assistance with the conversion process and also established a grain farm in Niger State to supply locally produced grains for the breweries.[7]