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  • Business - Companies
  • Updated: September 14, 2020

Dorobucci, Chelsea, Others To Lose Millions As FG Clampdown On Sales

Dorobucci, Chelsea, Others To Lose Millions As FG Clampdown

Several companies selling alcohol in packaged sachets and PET bottles in Nigeria are about to lose millions in revenue following the Federal Government's clampdown on alcohol abuse by consumers. The government is planning to reduce its availability in the market.

There are various sachets and PET bottle alcohol brands in the market, with high accessibility. Due to the market's low entry barrier, the market is saturated by small and medium alcohol companies, and they have been thriving due to the high demand for affordable products.

Some of the market-leading brands are Dorobucci, Chelsea, Orijin, De Rok, Action Bitters, and many more. These products are sold between NGN50 - NGN100. Its affordability has led to an increase in the consumption of this alcohol grade.

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No More Registration Of New Companies, Production Cut

In a bid to tackle the high consumption rate, new companies planning to enter the market will be denied registration by the National Agency for Foods and Drugs Administration and Control (NAFDAC). The phasing out will, however, come in stages.

The first major step by the government is to stop registration of alcohol in sachet and PET bottles that are above 30 percent alcohol by volume (ABV). While the existing companies will cut production by 50 per cent of capacity - this began prior to January 2020.

Nigeria Put Health Before Revenue

While the revenue of these small and medium alcohol companies is expected to drop significantly, the government is prioritising public health. Note that these sachet and PET bottle alcohol are usually found at bus parks and accessible to children as well.

Nigerian government believes the cutback and reduction in numbers of companies in the market will reduce the availability of the sachet and PET bottle alcohol, thereby reducing the high consumption rate which puts consumers' health at risk.

“These concerns relate to negative effects of irresponsible alcohol consumption on public health and on the safety and security of the public, alcohol being a toxic and psychoactive substance with dependence producing properties.

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"In regard to alcohol, major stakeholders have been engaged at the highest level and are already sensitised to the issue. To this end, several interventions jointly agreed upon by major stakeholders are being undertaken and as a first step, no new products in sachet and small volume PET or glass bottles above 30 per cent ABV will be registered by NAFDAC

"Furthermore, to reduce availability and curb abuse, effective January 31, 2020, producers of alcohol in sachets and small volume PET and glass bottles are to reduce production by 50 per cent of capacity prior to January 2020. The overall goal is a complete phase-out of high concentration alcohol in sachets and small PET and glass bottles in line with the agreed roadmap or earlier,” Adeyeye said.

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