Gala is the market leader in the sausage roll market and has become a generic name for sausage roll snacks which can be seen being sold on the streets of Nigeria’s major cities.
It is manufactured by UAC Foods a subsidiary of UAC of Nigeria Plc, a conglomerate listed on the Nigerian Stock Exchange (NSE).
The price of Gala has remained stuck at N50 for the past 10 years, even as inflation in Nigeria has averaged about 10% per annum, over the period.
The only take away from this is that the company is either cutting back on the quality of Gala or is getting hit massively on Gala margins (assuming there is any profit left after producing and packaging the beef sausage for a mere N50).
UAC of Nigeria Plc, noted as much in its presentation of Full Year 2015 results, saying that for its foods subsidiary:
“Turnover was down 4% due to reduced consumer spend and increased input prices impacted margins.”
Nairametrics checks at fast food restaurants shows that similar sized beef sausage rolls sell for between N200 and N300 a piece.
A Gala eater interviewed says there is a noticeable reduction in the size of the sausage rolls and wondered if there is still any real beef in the product or just coloring.
We wonder so too at Nairametrics and hope our readers can write us about their thoughts on this issue.
