Kasapreko considering setting up manufacturing plant in Nigeria

Kasapreko Company Limited, Nigeria’s leading player in the bitters market, is interested in setting up a manufacturing plant in Nigeria, an official of the company said.

Kasapreko Company currently has its manufacturing plant in Ghana, but has not ruled out bringing down machinery to Africa’s largest economy, which is its largest market.

“We have been here since 2013,” said Sam Osafo, sales and marketing director at Kasapreko Company in Lagos.

“Normally, when you are operating in an international market, you start first with importation. After you grow your business, you consider manufacturing. We have had discussions, but they are not firm yet. I may not give timelines, but Nigeria is the largest market and a place to do business.  But you have to understand the regulatory system in the country. You need to have credible Nigerians in your board to advise you. But for sure, if Nestle, Coca-Cola, Guinness are here, why not Kasapreko?” he asked, rhetorically.

Kasapreko produces alcoholic and non-alcoholic beverages in Ghana. It is known for its ‘Alomo’ brands. The company recently rewarded two key distributors that met their revenue targets.

“We promised them that if you take 20,000 every month from October to December, we will give them 500 cases free of charge. If you achieve October to December target, you are getting 1,500 for free. We also promised that distributors and wholesalers that achieve their target will go to Canada for a week,” said the sales and marketing director.

According to Osafo, the company is hard hit by contraction in consumer purchasing power, saying that company’s sales fell 30 percent in 2015 when compared with 2014.

The firm is also battling with fakers and counterfeiters, who have devised a series of ploys to reap where they have not sown.

“In March 2015, we launched a hologram to protect consumers. When you consume your ‘Alomo’ and it does not have the hologram, you don’t have to go near it,” the sales and marketing director of Kasapreko Company said.

The director told Real Sector Watch that the foreign exchange crisis has also hit the firm.

“These are imported products. They are invoiced in dollars, but people pay in naira. You cannot transfer money out of this country, and you have to buy dollars from the black market. So we have a lot of exchange losses,” he further said.

Regarding competition, the director said others compete with prices, while Kasapreko does so with quality.

“Those who care for their health should always choose ‘Alomo’,” he advised.

ODINAKA ANUDU