Nigerian sees emerging CSD giant in highly competitive market

The upward growth trajectory of Nigeria’s economic landscape, coupled with its vibrant population at over 160 million, which comprises of a 60 percent youth concentration at 80 million, has in recent times continuously rubbed off positively on the country’s purchasing power, making it a profitable haven for businesses, manufacturers and investors alike.

Despite the numerous political and economic challenges bedevilling the nation, analysts have continued to rate Nigeria’s economic environment high. This status, according to them, has firmly placed it as 6th among the 10 fastest growing economies in Africa and also tipped to be one of the 10 fastest growing countries in the world by 2015.

Booming CSD market

Not surprising, it has continued to become the hot-bed for manufacturer’s who have relentlessly pumped in capital into the nation’s economy. One thriving sector, worthy of mention due to the huge size of the market is Carbonated Soft Drinks (CSD), which has seen global manufacturers – Coca Cola, PepsiCo hold sway for decades in Nigeria, enjoying immense growth in their bottom-lines, thanks to the strong revenue inflows from their Nigerian subsidiaries.

Nigeria continues to be one of the fastest growing carbonate markets in Africa owing largely to its ever growing youth population. Strong investment by global manufacturers Coca-Cola and PepsiCo demonstrate the market’s potential, especially amid rising disposable incomes.

As such, brands such as Coke and Pepsi are able to leverage their global popularity, making way for strong similar brand performance in the country’s cola carbonate category.

LaCasera’s giant strides

On the other hand, a vibrant new comer, LaCasera after only 10 years, is beginning to take a big slice of the market share, off the known giants, Coke and Pepsi as the non-cola carbonate drink is now firmly part of the dominant category in Nigeria.

Local brand, LaCasera is growing market share thanks to its popular apple flavour variant, investment in PET packaging, and atypical distribution networks.

In reinforcing this fact, analysts have observed that carbonates in Nigeria, particularly have witnessed strong growth, with the nation selling more than 1.2 billion litres off-trade in 2012, trailing only South Africa’s 2.8 billion across the continent.

Global manufacturers have taken note, investing heavily in establishing distribution networks and executing massive marketing campaigns to ensure brand awareness.

But while Coca-Cola dominates the soft drink industry as a whole with 29.6 percent of the off- trade volume market over the last four years, the company has been losing carbonate share to locally owned La Casera Co Ltd.

Trailblazer

Formerly known as Classic Beverages Nigeria Ltd, the LaCasera Company renamed itself after its popular brand “LaCasera.” LaCasera is a traditional Spanish carbonate, once owned by Cadbury Schweppes, but now distributed by Suntory Holdings in Spain and the LaCasera Company in Nigeria. In Spain, the citrus soda is often combined with wines or beer, and is used to prepare sangria. But in Nigeria, the LaCasera brand is known most commonly for its apple flavoured variant, and is also offered cream soda, and classic cocktail flavours.

Not long after, LaCasera took credit as the first to use PET bottles in 2001, a daring move by all standards in a contour dominated CSD market which has seen others follow suit. it went on to raise the stakes again when it introduced a new ‘Ice Feel’ bottle in November 2011, to mark its 10 year anniversary a symbolic move commended by stakeholders.

Securing consumer loyalty with top-notch innovation

Typical of a company that continues to witness notable success in its operations, the LaCasera Company has always maintained a close nit relationship with its trade partners as is evident in constantly assisting them make profits whilst also rewarding their efforts. It would be recalled that not too long ago, during an edition of the dealers’ conference, management rewarded over 214 dealers with 65 cars including overseas trips, while others won prizes in the form of laptops, computers, and motorcycles.

BALA AUGIE