The Nigerian bitters beverage market, estimated at over N32.2 billion ($200 million) annually, has suddenly been discovered as another investment boom with bigger players in the FMCG sector tapping into the opportunity.
The latest company to enter the industry is Guinness Nigeria which recently introduced Orijin Bitters where Kasapreko, a multi-million dollar Ghanaian company and other players mostly in the SMEs category operate.
The growing market, according to analysts, is due to rising change in consumer taste that prefers a special drink. It is also believed that the bitters originates from herbs which contain body purifiers, anti-malaria components and ingredients for improving the virility of man which to a large extent is enticing to some individuals.
Ghanaian company, Kasapreko, deepened the market in Nigeria with entry of its Alomo Bitters in 2011, a large market where the earlier operators such as Swedish and German bitters perhaps did not leverage adequately due to limited product distribution.
Jose Roque, country manager for Kasapreko, told BusinessDay that the market which is estimated to witness more entrants because of its volume, estimated the value of the market at over $200 million.
According to him, the Nigerian market for Alomo Bitters alone is over 50 percent of the entire Kasapreko business in West Africa as the brand has become generic name for bitters beverage.
“If you look at Africa, anyone who does not see the Nigerian market is really blind. You can’t miss Nigeria; it is a powerhouse in Africa. From the GDP stand point and population, Nigeria is the largest economy in Africa”, Roque, who is from Philippines, said.
On competition from big players like Guinness and other brands such as Action Bitters, Osomo, Kerewa and many others, Roque who ilwas Coca Cola manager in Tanzania and Kenya before moving to Nigeria said the best form of measure of success is innovation.
“The growing competition means we don’t need to be complacent. We have to continue to be vigilant and innovate. You can’t continue to ride on your success. If competition keeps copying the leader and you don’t do anything, before you realise it, your market has been eroded. We have to step up on our marketing fundamentals, the more players in the marketplace will make you to step up and make sure you are ahead of competition”.
The country manager, who is fighting faking of his Alomo brand in the Nigerian market, attributed the rise of Alomo Bitters brand to Nigerian consumers.
“Last year on CNN, they declared that Alomo was one of the top five world emerging brands. Having that unsolicited, I believe it was driven by the Nigerian market and to a large extent by the Ghanaian community”.
He said Kasapreko established 25 years ago in Accra, Ghana has not given up on its plans to establish a factory in Nigeria. “We must make sure that our volume here is nearing the capacity of a line in Nigeria”.
About two years ago, the management of Kasapreko Company Limited signed an annual three million dollar (about N450 million) transnational trade deal with a Nigerian firm, Sonnex Nigeria Limited, a subsidiary of Somotex Nigeria Limited.
Under the partnership agreement which will last initially for the first five years, the management of Kasapreko, the manufacturers of Alomo Bitters who believe that Nigeria still remains the best investment destination, will import over 60 million packaging containers annually from Sonnex Nigeria.
In his statement then, the CEO of Kasapreko, Gideon Osei-Amoako, said the indigenous company which has invested over 30 million dollars in operation, is one of the biggest companies in Ghana. He said the agreement was the first time the company was engaging an African company for production of operational materials in large magnitude.
Daniel Obi
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
