9 Reasons To Invest In Wine Distribution Business – Today, wine distribution business is growing in emerging countries. However, evidence shows that Nigeria has the capacity to import wine. The country has developed a good market for exporters. The consumers also have a taste of luxury fine wines.
Nigeria is the most populated African country. It can attract investors to engage in wine business because Nigerians love wine. Almost 73% of red wine was sold in the market.
The Nigeria wine market is about £186 million ($300 million). However, the expected volume sales will increase by 6% yearly. Sue Birch, from Wines of South Africa stated that “Many of the global luxury brands have entered the Nigerian market, including several well known spirits and Champagne brands, which are being embraced by the country’s affluent consumers.”
Almost 60% of wine in Nigeria came from Europe. The second biggest exporter of wine is South Africa with a 22% share. In the previous year, wine exports to Nigeria increased by twelve percent.
Before doing business in this country, wine exporters must take note that there is 50 percent import duty and expensive bureaucracy in the Nigerian market. You have to register with the National Agency for Food and Drug Administration and Control (NAFDAC). Also, beware of the corruption and political unrest in Nigeria.
According to the CEO of pan-African supermarket group Shoprite named Whitey Basson, “Even if you have 60% of the population living in poverty, 40% of the Nigerian population is still bigger than the South African population,” he stated in an interview.
If you want to engage in wine distribution business, consider the following reasons below:
1. Wine distribution business is a recession-proof. You will not be affected during economic crises.
2. It does not require too many workers. The business can be managed by one or two workers. Even a family member can do the job.
3. Wine distribution business is protected by the government and guaranteed. You can deal with licensed companies and stores who comply regulations.
4. It needs a little amount of capital. The product is not subject to inflation. The anticipated expenses include inventory management, display racks and proper licensing.
5. The wine business has no hidden fees. You don’t have to pay for the ongoing royalty.
6. Has a big, high, and strong investment returns. You can gain 45% initial investment within 90 days. are not require to payfor the on going royalty
7. You can enjoy freedom in this business especially if you are a supplier. You do not focus on long hours of selling. You can deliver the products in various stores and schedule the delivery date.
8. It has a large market. The figure shows that more than 70 million of people worldwide love wine.
9. Has a wide range of distribution opportunities. You can distribute to grocery stores, liquor stores, hotels, restaurants, and banquet halls.
According to experts, wine industry has lots of competition and very hard to succeed. However, with dedication and focus, success can be attained.
When it comes to wine export business in Nigeria, Speed Cargo courier is reliable. The company is ready to help in all your export needs.