Soft drink giant Coca-Cola in a bid to increase their presence and influence in the Nigerian market have resolved to inject a whopping $600m into the production of new products.
The plan is to expand beyond mere soft drinks and add things like milk, iced tea and bottled water to their repertoire which will see them extend their services within Nigeria.
To this end, Coca-Cola acquired a 40 percent stake in Chi Ltd. for $240 million with a view of taking control in the next three years.
Coca-Cola’s daring plan is with the hopes according to the president of the West Africa operation Peter Njonjo “to provide whatever beverages you need across your life stages,”
This has not been without its challenges as Coca-Cola was hit hard by the recent recession which forced it in a bid to stay relevant to increase the price of some goods. They also had to get creative by introducing new bottle sizes and getting more local input. This has helped them stay afloat and with the country recovering from the recession and the CBN’s to improve dollar availability, things have gotten better.
Njonjo said; “The only way that you can ensure that the business is sustainable is by taking prices up. Some of it we have passed to the consumers,” Njonjo said. The soda maker has also increased investment in distribution and innovation. “It’s all about looking at how much money consumers have and how do I become relevant to consumers,”