How To Start Beer Distributorship In Nigeria

In this post, I will show you how to start beer distributorship in Nigeria and make money from it. Beer distributors in Nigeria are among the richest business people in Nigeria.

The reason is that Nigerians drink beer a lot and this make the turnover to be encouraging. Another reason is that, there are very few Nigerian breweries key distributors. So you can become Nigerian breweries distributor and start making money. See the guide below.

Beer distributors are the middlemen between the brewing companies and the sellers such as; Beer parlors, bars and liquor stores.

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How To Start Beer Distributorship In Nigeria

Beer Distributorship In Nigeria – Photo Source: http://www.nairaland.com

In Nigeria, the party scene is an unending gold mine of profit. There is always a party every weekend. And since this business majorly serves the public when they are throwing parties, it is an endless lucrative venture. Men in parties shun soft drinks and gist about life happenings over multiple bottle of beers.

One of the biggest advantage of this business is that much isn’t needed for advertising. Once you follow are on the main road in a strategic location selling a well-known brand, your customers will locate you.

However, a good relationship with these customers is necessary for the business to grow. Occasional credit sales to trusted customers.

This will let them patronize you more. However, these credits should have limits as too much might ruin the business.

How Profitable Is Beer Distributorship Business In Nigeria

As we have stated above, beer distributorship is very profitable. Although, it cannot be started with little capital, if well managed and located in a highly commercial area, you can make more than your capital in six (6) months.

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Key Players In Beer Distributorship In Nigeria

There are many known and famous entrepreneurs in the beer distributorship field in the country. Most have existed for many years and have over the years gained the support of both the Brewery companies and the customers. There are:

a. Adunni Store – 6, Fasugba Street, Abule Egba, Lagos State, Nigeria.

b. Emakudeb Investment Limited – 28, Amuwo Odofin, Festac, Lagos State, Nigeria.

c. Folashade Olorunde Store – 7, Olayiwola Street, Salolo Alagbado, Alimosho, Lagos State, Nigeria.

d. Ken Maduako Store – Nnewi, Onitsha, Nigeria.

e. Ifeoma Chukwuka Nigeria Limited – Onitsha, Nigeria.

Opportunities In The Beer Distributorship Market

There is always a party every weekend in Lagos, Abuja, Port Harcourt, Calabar and Ibadan. This means there’s always a market for the goods. Every weekend, a good distributorship can sell as much as 1000 crates/cases of beer.

You can also partner with event centers around the area to make you their principal supplier during events. Also, we live in a modern world hence, you can have an Instagram page that will advertise your business to nearby potential customers.

Knowledge And Skill Required To Run The Business

For you to have a successful beer distributorship in Nigeria, you need to be creative. You need to know how to deal with people.

You do not have to be a people’s person, but you need to know how to be nice and be strict with your customers without doing any of it too much.

Street Urchins (Area boys) too usually disturb distributorship stores and as the manager, you must be able deal with them without pissing them off as they can also be used as a tool to work sometimes.

You need to also be good at multitasking, negotiations among other skills. As they say experience is the best teacher, to learn more about the skills required, you can work a bit as a manager at a distributor store around you or employ someone trustworthy who has.

Raw Materials And Tools Needed To Start Beer Distributorship And Where To Get Them

A Roadside Land Where The Warehouse Will Be Built

Delivery Van Or Any Other Means Of Transport

A Good Team Of Workers, such as; Drivers, Motor Boys etc.

Best Location For A Beer Distributorship Business

The best location for this kind of business is a roadside warehouse. This will enable people easily be able to patronize you due to a good road network. The road should be tarred or at least smooth enough for easy on load and offload of goods.

Your warehouse should be surrounded by many beer joints, and/or event centers so where they will not have to board the vehicle to reach you since every business person always try to cut cost. It can also be near market places.

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Funding Needed To Start A Beer Distributorship In Nigeria

The minimal capital it takes to open and run a distributorship is about 6 million naira. Also since some of the goods will be given to your on credit, you need to have two (2) guarantees/sureties worth that same amount.

To get this funding, you can draft a killer proposal and seek loans from any of the leading banks in the country. You can also seek money from the Tony Elumelu Entrepreneur Foundation or Bank of industry.

Registration And Licensing

First, you’ll need to register and document with the Cooperate Affairs Commission (CAC). Beer and liquor are not the kind of commodity that can be sold anyhow.

You’ll need to seek local government permits, the state government permits as well as the federal government permits.

Packaging, Distribution And Marketing Tips

a. You can choose to deliver drinks to your customers as long as their shops are not too far away.

b. A good credit facility system that enables customers stay loyal to your brand is okay. As long as there’s a limit to it

c. A good door to door visit to noted clubs, bars and beer parlors around the area won’t hurt.

Company Structure And Staffing

A beer distributorship business is a lousy business. This means operating one attracts too much attention of neighbors in the surrounding hence it is a business best managed by yourself.

Staffs should include trustworthy and responsible drivers, hardworking motor boys and an educated accountant/secretary. You can have one or two hefty looking security men to prevent the attacks of street urchins.

Read Also: How to Start Drinks Supply, Distribution and Marketing Business in Nigeria

Conclusion

A beer distributorship business is profitable as long as it is located in an open location. A good personality in this business will attract more customers.

Also, good management of money and staffs will help the business stay afloat and you never know, maybe someday, you can be awarded the best distributor in the annual Breweries award night.

Of course, you will have to be ready to beat the record set by your predecessors, which is  about 5 million cases in a year.

 

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Funmi Hammed is a Content Developer at InfoGuideNIgeria.com. InfoGuide Nigeria is a team of Resource Persons and Consultants led by Ifiokobong Ibanga. Page maintained by Ifiokobong Ibanga. If you need a personal assistance on this topic, kindly contact us.

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