BUSINESS AM FIRST EDITION, FEB 2018

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28 BUSINESS A.M. FEBRUARY, MONDAY 05 - SUNDAY 11, 2018 MANUFACTURING & INDUSTRY La Casera: Can the ‘refresh’ launch take it back on the block? Since its foray into the market in 2001, La Casera has managed to leverage its brand equity to carve a niche in the carbonated soft drinks (CSD) sector of Nigeria’s food and beverage industry. It’s renewed push to reclaim market leadership through the re-launch of its premier brand, La Casera apple drink has been touted to spark another round of competition in the market. AJOSE SEHINDEMI looks at the probable outcome of the branding exercise. Ajose Sehindemi For investors in the Carbonated Soft Drinks (CSD) segment of the food and beverage industry, Nigeria’s estimated 180 million consumers as well as market known for its high return on investment (RoI) are too tempting to ignore. This may have prompted the entry of La Casera apple drink into the market in 2001. And it was an instant success. The popular beverage, under the Classic beverage stable, effectively challenged the dominance of that segment of the market by the likes of Coca-Cola, Pepsi, and 7up. The La Casera apple drink was the toast of most CSD consumers until lately. Packaged in easy-to-drink polyethylene terephthalate (PET) bottles, the non-alcoholic, pocketfriendly beverage was available in most cities across the country. Although, the drink’s ease of purchase and convenience of consumption as an on-the-go CSD make it the first choice for consumers, it was not long before hitherto existing beverage companies started challenging La Casera’s unparalleled foray in the market. For instance, the Coca Cola quickly rose to the occasion, first poached a top manager from the La Casera Company and thereafter in October 2014, introduced its own apple flavor brand, Fanta Apple, into the market. Although, La Casera was rattled by the advent of Fanta apple flavour, the beverage maker re-strategized to push back competition and reclaim its market share. Apart from investing heavily in machineries to increase its production line, the company in 2017 re-launched its flagship brand, La Casera apple drink. The move was seen by industry operators and stakeholders as a bold step to regain market leadership while also stoking another round of competition in the industry. At the re-launch in Lagos, Roland Ebelt, La Casera managing director, assured all that the company has come to stay. He said the need to offer Nigerian consumers a fresh new look of the product prompted its re-introduction into the market with more innovations. He was emphatic that the company wanted to reclaim its market dominance hence it called its friends, dealers, trade partners and distributors together to showcase the innovations. At the re-launch, Vishal Kaveti, its regional sales manager, said although, 2016 was a bad year for the company, it has re-strategized to call the shots in the CSD segment of the beverage sector. The challenges Despite the re-launch of La Casera, opinions of some brand analysts who spoke with Business A.M, called for caution in celebrating the re-launch. They said then that the company’s move to reclaim 2016 was a bad year for the company, it has re-strategized to call the shots in the CSD segment of the beverage sector them deeper into the red ocean as the expected challenge to the major brands - Coca Cola and Pepsi- was infinitesimal that the battle is between the two major brands, teasing the consumers in price mechanism superiority. A survey of some of the dealers reveal that the ‘King of the road’ title once proudly held by La Casera is now between the N100 Coca-Cola and Pepsi. That is not all. Business A.M learnt further that part of the chalmarket leadership might not be a smooth ride. They pointed out, for instance, that the company still has a lot to do to persuade its consumers, especially considering the fact that no new details were conveyed with the re-launch. “It’s the same product, same quantity, same PET bottle, but different wrapper,” one of the analysts, who declined to be mentioned, said. Sikira Adenike, a dealer later expressed concern on the possibility of the re-launch reconnecting the brand to its consumers and distributors. She said that for the brand to achieve its aim, there is need for more assurances to its distributors. It appears that the re-launch fun fare and discount given to distributors by the company to put them into the blue ocean has actually sunk lenges that faced the company was the face-off between workers and management of the company over the non unionisation of its workforce. In September 2015, over 700 workers and 600 casual staff of La Casera Company Limited were laid off. The labour union forced the company to shut down as a result. The workers’ sack was reportedly caused by the alleged disruption of the company’s operations by members of the National Union of Food, Beverages and Tobacco Employees (NUFBTE), who called for the unionisation of the workforce. While the management blamed the mass dismissal on NUFBTE’s interference and invasion, the workers said they fell out with the company’s management following attempts to frustrate their decision to join the labour union. However, the workers were later reinstated after a legal battle and the company reopened. As if these were not enough upset for a company struggling to reclaim its lost market position, there were also claims that the product was unfit for consumption as it contained some harmful ingredients. But the management of the company swiftly denied the claim, as it led officials of the National Agency for Food, Drug and Administration and Control (NAFDAC), the Standards Organisation of Nigeria (SON) and the Manufacturers Association of Nigeria (MAN) into its ultra modern facility, along Apapa–Oshodi expressway. After necessary scrutiny, all the regulatory bodies gave the company’s product a clean bill of health. They certified the drinks safe for consumption and urged Nigerians to dispel the rumours. Will La Casera be able to remain relevant in the CSD market and claim market leadership as before? Only time and a probable slip from competition could tell. Dangote, LafargeHolcim, join seven other cement companies to form global industry association Ajose Sehindemi Dangote and LafargeHolcim, two cement companies with operations in Nigeria are among nine cement companies around the world that have come together to form a new global association called Global Cement and Concrete Association (GCCA), business a.m. has learnt from information made available to it over the weekend. The association is described as a progressive group dedicated to developing and strengthening the sector’s contribution to sustainable construction. The association said it would focus on driving advancements in sustainable construction, working to en- hance the cement and concrete industry’s contribution to a variety of global social and developmental challenges. To achieve this objective, GCCA will promote the development of durable, resilient and environmentally sensitive buildings and infrastructure at global level. With concrete now the world’s second most consumed product after water, issues at the forefront of the organisation’s agenda include sustainable development and urbanisation, as well as climate change mitigation and adaptation. In addition, GCCA aims hance the cement and concrete industry’s contribution to a variety of global social and developmental challenges. To achieve this objective, GCCA will promote the development of durable, resilient and environmentally sensitive buildings and infrastructure at global level. With concrete now the world’s second most consumed product after water, issues at the forefront of the organisation’s agenda include sustainable development and urbanisation, as well as climate change mitigation and adaptation. In addition, GCCA aims to foster innovation throughout the construction value chain, in collaboration with both industry associations and inspiring architects, engineers and innovators. With concrete now the world’s second most consumed product after water to existing associations at national and regional level and membership of GCCA is open to cement manufacturers from all over the world that share the organisation’s values, and partnerships will be developed with organisations that share its vision. The nine members of the association represent 1,046MTof cement production capacity, according to the Global Cement Top 100 Report. The association also aspires to demonstrate how concrete solutions can meet global construction challenges and sustainable development goals, while simultaneously showcasing responsible industrial leadership in the manufacture and use of cement and concrete. GCCA’s seven other founding members are CEMEX, CNBM, CRH, Eurocement, HeidelbergCement, Taiheiyo and Votorantim. The association will be led by international cement companies and headquartered in London, complementing and supporting the work done by existing associations at national and regional level and membership of GCCA is open to cement manufacturers from all over the world that share the organisation’s values, and
BUSINESS A.M. FEBRUARY, MONDAY 05 - SUNDAY 11, 2018 MARKETS DATA 29 The Nigerian Stock Exchange
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BUSINESS AM FIRST EDITION, FEB 2018

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