Thursday 25 April 2019
BUSINESS DAY
Retail &
23
consumer business
CONSUMER SPENDING
In Nigeria’s food market, seasoning cubes continue to jostle for consumers’ cooking pot OLUFIKAYO OWOEYE
F
ood seasoning products are a very important aspect of cooking, before the introduction of modern food seasonings in cubes and powder forms, there have been several local seasonings, such as Iru, Ogiri, and Dawadawa just to mention few all of which still feature in most Nigerian cooking pots till today. In most Nigerian homes and eateries, food seasoning is important because with the right culinary expertise, especially when the right brand of seasoning that makes people salivate is used, the meal becomes something of an experience which the family relishes and keep them requesting for more like the popular Oliver Twist. The seasoning market in the country parades some great brands, with each manufacturer churning out new variants in a bid to protect its market share and remain relevant in the market space. Recently, TGI Distri Limited, former owners of Chi Limited producers of Chivita, Hollandia drink, with diversified interests and investments in Nigeria and other Africa countries announced its arrival into the seasoning market with the launch of Terra seasoning cubes. Sunil Sawhney, TGI Group Executive Director and Managing Director of TGI Distri, said the new seasoning cube was an outcome of painstaking research and insights into the
demands and requirements of customers. According to Sunil, the cubes come in two variants; beef and chicken, in single cubes of 4gram, adding that Terra Cubes have particularly been designed to meet the palate requirements of all Nigerians, especially in terms of aroma and flavor. The new entrant will have to battle the big elephants in the market leading the park is Maggi from the stables of Nestle Foods, then
Knorr and Royco, produced by Unilever. These brands are leaders in their various market segments and none of them can be pushed aside in terms of brand visibility, sales, consumer loyalty, and quality market offerings. The two major brands in the food seasoning market in Nigeria today are Maggi and Knorr brands. Even with the introduction of new seasonings into the market, these two
brands have continuously battled for the No.1 spot in Nigeria’s food seasoning market. Knorr cubes, after being bought over from Cadbury Nigeria by Unilever, has remained a force to be reckoned with in the seasoning market. Over the years, the company has invested in machines and a new savory hall, in its bid to give consumers premium quality cubes. On the other hand, Maggi is an international brand owned by Nestlé, and according to the company, it sells over 100 million cubes in the Central West African region daily. The brand has occupied a big space in the hearts of consumers and it has become the generic name for seasoning cubes in the country. Other players include Doyin Group of Companies, manufacturers of Doyin seasoning cubes, and Prime seasoning cubes, and Daily Need Nigeria Limited, makers of Suppy cubes, which come in two brands of beef and chicken. Also, PZ Wilmar, a joint venture between PZ Cussons and Wilmar International, makers of Mamador and Devon King’s Oil, recently launched its Mamador seasoning cubes which comes in three variants. According to makers of Terra Cubes, the new variants of seasoning cube will in a short period of time gain a competitive edge over other brands and control a large chunk of the market share. No doubt, the seasoning market is growing daily with new products making entry into the market. Hence, leading brands must double down or they could lose positions to new entrants such as Terra Seasoning cube brand poised to gain more market share.
company
Samsung postpones Galaxy Fold phone launch over screen defect Endurance Okafor
E
lectronic giant, Samsung says it will not be able to deliver the highly anticipated Galaxy foldable phone this week as previously planned. This is due to screen problems of the device. Reviewers of the phone samples reported breaks, bulges and blinking screens after a day’s use. Samsung Electronics Co Limited Monday made its first public admission of the problem with the new device. It said the Galaxy foldable phone is “prone to malfunction near the hinge.” The South Korea Tech conglomerate, therefore, plans to conduct a test and announce a new release date. The foldable device’s US release is billed for April 26. The Seoul-based tech firm is said to be retrieving all Galaxy Fold samples distributed to reviewers to investigate reports of broken screens. The last time the company had such challenges was in 2016 when it pulled off the Galaxy Note 7 from the market due to exploding batteries.
Checks by BusinessDay revealed that mobile phone penetration in Nigeria has increased significantly in recent times owing to the youthful population in the country. Having the highest population in Africa, Nigeria has about 65 percent of its 190 million people as youths. According to the 2018 figures from Euromonitor International, a UK-based market research and analysis firm, there was a stiff
competition between phone manufacturing giant, Samsung and its rival, Transsion in Nigeria in 2017 with both enjoying a large share of the market. In the review year, Samsung’s market share of smartphone shipments in Nigeria slumped to 34 percent, while Transsion Holdings shares was up 32 percent, a 7 percentage points rise from 25 percent in 2016. Transsion leverages on its products
like Tecno, Itel and Infinix which are less expensive than Samsung to break into the Nigerian market. The Nigeria mobile phone market is largely dominated by international companies with little or no input from local manufacturers. However, cheap price, smartness, compactness and improved software coupled with it multi-sim feature made the Chinese manufacturers a domineering figure in the mobile market of Africa’s most populous nation. While Tecno smartphones have turned to favourites among some Nigerian consumers who represent a larger percentage of country’s population, Itel brands have overtaken other brands in the feature phones sphere as consumers opt for a portable multi-sim phone at a cheaper price. More so, the availability and affordability for the average Nigerian consumers who are low/ middle-income earners have given these brands edge in a highly competitive mobile market. According to the Euromonitor report, Tecno Mobile comes first with Itel following closely behind; more expensive brands still represent a meager figure in the mobile market in Nigeria.
Analyst: Bunmi Bailey Graphics: Fifen Eyemisanre Famous www.businessday.ng
https://www.facebook.com/businessdayng
@Businessdayng