Rite foods effort to serve Nigeria’s growing beverage market

Once viewed as an opportunity for refreshment and indulgence, the food and beverage market has undergone a significant transformation, with a growing focus on nutrition and high quality.

This shift in consumer demand, indeed, is showing no sign of slowing down, putting more pressure on manufacturers to come out with products that not only help solve their cravings but also of high quality.

These demands are even more resonating for indigenous manufacturers in Nigeria, who are also faced with winning consumers’ trust, in a market that is saturated by international brands.

In 2015, consumers in Africa spent an estimated $1.4 trillion (£1.1tn), according to research firm McKinsey, and by 2025, consumer spending is expected to top $2tn (£1.5tn).

Last year, Godwin Emefile Central Bank of Nigeria (CBN) Governor also noted that Nigeria spends an average of 73% of their income on food and beverages products, however given the choice, vast majority of Nigerian consumers will opt for food and beverages products made outside of the country a preference in last few years that is wearing away fast.

In fact, consumers’ lack of confidence in locally produced items was captured in a data from research firm Euromonitor in 2013 which showed that more foreign brands holds great appeal in Nigeria.

Nevertheless in the last five years, Nigerian based Beverage Company, Rite Foods makers of bigi drinks, rite, Bigi Sausages and Fearless Energy drinks seem to have overcome the odds.

From producing a traditional beef sausage rolls to variety of beverages that rivals international standards, the brand has expanded to become a household product.

The company has a factory located three hours outside Lagos, where it makes a range of soft drinks, water and snacks like sausage rolls.

According to Seleem Adegunwa, MD, Rite foods who spoke at the company’s factory in Ososa, Ogun state during a tour by a correspondent of Broadcasting Service, BBC, it was emotional at the beginning, trying to convince the market that Nigerians can manufacture products that are 100 percent proudly Nigeria, and of high international standard.

“If anything, being a Nigerian-owned brand initially would almost become a negative, because people think that what is produced locally just can’t be as good, but what we’ve been able to do in the last 28 months is to show that no, actually you can be a proud Nigerian brand,” Rite Foods’ managing director Seleem Adegunwa told the BBC.

“Building a brand that meets international standard, to satisfy a very cautions Nigerian consumer market, was a journey that starts from building a factory on a 23.780 hectares of land area (58.763 acres) comprising three main buildings: the Bakery Factory, Beverage Factory and the Warehouse, including other buildings such as Security/Fire Station, Staff Welfare, Service Bakery and Gate House currently generate its power.”

“From the inception all we wanted was to build a beverage company that will meet Nigerian consumer’s taste, from ingredients sourced locally.”

Last year, the company acquired acquired ISO 9001:2015 Certificate issued by the Standard Organization of Nigeria for her Quality Management System.

“In terms of hygiene and quality it can never be better because we use the best machinery, best practices and zero human interference” he noted.