Over the past couple of weeks, consumers across Lagos and beyond have been in search of Cadbury’s Hot Chocolate Drink beverage. The product, which comes in sachets and sells for an average price of N80, has suddenly become a truly “hot commodity” no thanks to its scarcity.
This is the first time the product has become this scarce ever since it was launched into the Nigerian market not too long ago. The development has puzzled analysts at Nairametrics, some of whom consume the product.
Connecting the dots
To find out what is happening, we investigated. Across Lagos, shop keepers narrated how a shortage in supply is responsible for the product’s scarcity. Our investigation even suggested that the recent closure of Nigeria’s border with some neighbouring West African countries could be responsible. How is this the case?
It should be noted that the Hot Chocolate Drink is manufactured in Ghana by Cadbury Ghana Limited for Cadbury Nigeria Plc. What this means, therefore, is that the finished products are exported to Nigeria from Ghana.
Interestingly, Ghana does not share any border with Nigeria. As such, goods coming in from the country pass through either Togo or Benin Republic. In this situation, this typically drives up costs for both Cadbury Ghana and Cadbury Nigeria. And now that the border closure is effective, it is understandable why the supply of the product to Nigeria dropped.
What Cadbury said
Nairametrics contacted Cadbury Nigeria Plc in a bid to better understand the matter. Cadbury has since issued a statement claiming that the product was not discontinued. According to its Corporate Communications and Government Affairs Manager, Frederick Mordi, “Our attention has been drawn to an article titled: ‘Cadbury’s Hot Chocolate Drink is Scarce, and Border Closure Could be Responsible.’… We wish to reassure our consumers that we will continue to delight them with our Cadbury Hot Chocolate 3 in 1 Drink.”
In the meantime, the Cadbury Hot Chocolate Drink is not completely absent in the Nigerian market. However, its price has gone up; a resultant effect of high demand and scarcity. If you happen to find it anywhere, you may have to spend nothing less than N100 to buy it, as against N80 a few months back.
Still on this
A wide section of Nigerian consumers loves the Cadbury ready to drink beverage because of its affordability. Over the years, a lot of Nigerian companies began packaging their products in smaller (affordable) quantities targeted at low-income earners. This followed the success of Promasidor’s Cowbell which primarily targeted low-income Nigerians from inception.
Now, let’s get to Cadbury Nigeria Plc for a moment. The company’s recently disclosed earnings report for the nine months ended September 30th showed that the company did okay. Its revenue increased by 7% to N28.9 billion, up from N26.9 billion during the comparable period last year.
Profit after tax for the nine months period stood at N648 million, a 277% growth compared to N171.9 million as at September 2018.
The company’s share price is currently trading at N9.60 on the Nigerian Stock Exchange.
NB: Quoting a source from Cadbury, an earlier version of this article reported that the product had been discontinued. However, the company has issued an official statement claiming that it had not been discontinued.
Peter Obaseki retires as Chief Operating Officer of FCMB Group Plc
Mr Peter Obaseki, the Chief Operating Officer of FCMB Group has retired from the financial institution.
The Board of Directors of FCMB Group Plc has announced the retirement of Mr. Peter Obaseki, the Chief Operating Officer of the financial institution, with effect from March 1, 2021. He was also an Executive Director of the Group.
His retirement was approved at a meeting of the Board of the Group on February 26, 2021. This has also been announced in a statement to the Nigerian Stock Exchange (NSE) by the financial institution.
The Chairman of FCMB Group Plc’s Board of Directors, Mr Oladipupo Jadesimi, thanked Mr. Obaseki for his valuable service and excellent support to the Board for many years.
FCMB Group Plc is a holding company divided along three business Groups; Commercial and Retail Banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited); Investment Banking (FCMB Capital Markets Limited and CSL Stockbrokers Limited); as well as Asset & Wealth Management (FCMB Pensions Limited, FCMB Asset Management Limited and FCMB Trustees Limited).
The Group and its subsidiaries are leaders in their respective segments with strong fundamentals.
For more information about FCMB Group Plc, please visit www.fcmbgroup.com.
Deezer accepts payment in Naira amid stiff competitions with Spotify, Youtube music, Apple music.
Deezer has gained quite a reputation in Nigeria, as it slashes its subscription fee and now accepts payment in Naira.
Deezer slashes subscription fee and now accepts payment in Naira amid stiff competitions with Spotify, Youtube music, Apple music.
Deezer, the French music streaming platform that has gained quite a reputation in Nigeria has slashed its subscription fee and now accepts payment in Naira.
This is coming a few weeks after Spotify launched in Nigeria and 38 other new markets in Africa.
The competition in the Nigerian music streaming space is getting hotter by the day. More music streaming platforms are entering the Nigerian market with better payment methods and cheaper pricing, thereby forcing existing players to slash their prices so as to hold on to their customer base
Launched in 2007, Deezer currently connects over 16 million monthly active users around the world to 73 million tracks.
Before now, Deezer’s subscription was rated at $4.99 (₦1,800) for premium customers and the family plan for ₦2,700.
This number has been slashed in half. The music platform now charges ₦900 ($2.36) for Deezer Premium, ₦1,400 for Deezer HiFi and ₦1,400 ($3.67) for Deezer Family Plan.
Other streaming players in Nigeria like Apple Music, Spotify, Youtube music, Boom Play, Audiomack and Soundcloud have also slashed their prices.
For YouTube Music, the monthly individual subscription costs ₦900 while a family plan costs ₦1400 ($3.67).
Spotify Premium cost ₦900 per month in Nigeria. The Premium Family plan goes for ₦1,400 for up to 6 family members.
Apple music charges ₦450 per month for students, ₦900 per month for Individual plan while the Family plan goes for ₦1,400 for up to 6 family members.
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