If you ask anyone in Nigeria which is the bigger brand between Coca Cola and Pepsi, you’d probably be told, it’s the former.


Indeed, Coke is widely believed to be the leader in the cola drink market in the nation. But recently, the changing dynamics of the cola war seems to be favouring Pepsi.
Although the financial statement of Coca-Cola for 2017 is not made public, an unofficial source in the company revealed that its net sales volume to Nigeria dropped by 8.66 percent from the €583.3 million recorded at the end of 2016 to €532.80 million (N227,298,986,863.04) recorded in 2017.

On the flip side, the Seven Up Bottling Company, manufacturers of Pepsi and other drinks in Nigeria, recorded N10.7 billion loss before tax for the financial year ended March 2017. Instructively, its selling and distribution increased to N13.9 billion in 2017 from N11.8 billion and revenue increased from N85.6 billion in 2016 to N108.2 billion in 2017. Reports said the company’s fortune slightly improved by the second quarter of 2017. It recorded a 2% growth in revenue in the second quarter 2017 while net profit climbed by 5%. Half-year profit was also reported to have grown by 17%. Surely, the company’s fortunes did not come only from revenue generated from the volume of sales of Pepsi but it is indicative of its rising profile.
Investigation by make it shows that Coke is losing out to Pepsi in the on- the-go-market points in locations like traffic jams
and motor parks.


A recent survey conducted by make it showed that Pepsi has considerably cut deep into the domineering market share of Coke.
Although, superstores such as Shoprite, Justrite and others are offering consumer groceries, including soft drinks at discounted
prices, on-the-go market points like traffic jams and bus terminals remain a major off- trade channel that certainly cannot be ignored as high volumes of consumables get to consumers on the go.

make it’s survey of major traffic spots and major motor parks in Lagos shows that Coke has almost lost out to Pepsi, and is retreating
into retail shops and fast food joints.
Soft drinks vendors who were old allies of Coke are forging a new, rewarding relationship with Pepsi.
Only 9 out of 17 hawkers surveyed in Ijaye Bus-stop, along Oshodi – Abeokuta expressway had Coke in their sales packs, while the entire 17 had Pepsi.
A distributor of soft drinks in Ijaiye Shopping complex who declined to give her name said Pepsi is leading in the sales of carbonated
drinks. “We don’t sell much of Coke, the one that moves is that one without sugar- (pointing to a low sugar brand) because consumers are running away from sugary product. Most people now ask for Pepsi.”
At Sango Ota, out of the 20 vendors sampled, 16 had Coke, while 17 had Pepsi in their stocks.
At Iyana Ipaja Bus Stop, 14 vendors had Coke, while the same number sold Pepsi. At Berger – Ojodu, only eight out of 10 hawkers had Coke, while all the ten had Pepsi.

A vendor who identified himself as Femi told make it he does not peddle Coke because “there is really no gain in it. You make only
N10 from each PET bottle.”
At Ikeja Along, by rail line, only 11 out of 14 hawkers had Coke, while 12 had Pepsi.
Coca Cola has been going through challenging times in recent years which has seen it close down its concentrate plant in Ogun State in
2009.
In 2011, it delisted from the Nigerian Stock Exchange. Recently, the company said it was evaluating its competitive position
in on-the-go channels and was taking measures to maintain its leadership position.
A senior staff of Coca-Cola who agreed to speak to make it on condition of anonymity because he was not authorised to speak said, “we have invested consistently over the past eight years in particular to expand our production and distribution capacities and meet
increasing consumer demands across our various trade channels, including the on-the-go market.”

Last week, The Coca-Cola Co. confirmed it was set to complete a 100% takeover of Nigerian dairy and soft drinks business Chi within the next six months, showing the increasing confidence of the global brand in the Nigerian market.

However, it seems evident Coca Cola must put on its thinking cap if it hopes to edge out its main competitor, Pepsi that is cutting a large chunk off its market share.


Source: https://www.makeitglobal.biz/cola-war-pepsi-leads-coke-makeit-survey/

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