Consumers turn to Pepsi, Big Cola as Coke prices soar 25%

Price conscious consumers of Coca-Cola are switching to Pepsi and Big Cola following the 25 percent increase in the price of Coca-Cola drinks.

Nigerian Bottling Company (NBC), producers of Coca-Cola and its variants increased the prices of its 50cl pet bottles drinks including its 150cl Eva water to N150 from N120, two weeks ago.

However, the prices of competing brands Pepsi from the stables of 7-up bottling company and Big Cola from AJE Group, a multinational beverage company with headquarters in Lima, Peru have remained at the price of N120 and N130 respectively.

BusinessDay recent survey around different retail shops across Lagos metropolis such as Apapa, Ikeja, Oshodi, Gbagada, Ikoyi and Victoria Island, reveal that some consumers have ditched Coke for cheaper substitutes.

‘‘Few weeks ago, Coca-Cola was the most preferred brand but not anymore. The drink on the lips of most of my customers who usually purchased coke is Pepsi. Pepsi is the new Coca-Cola,’’ said the manager of a big supermarket in Lagos, who spoke on the condition of anonymity.

Some consumers have reacted to the hike in the price of Coca-Cola products saying that it’s an opportunity for Nigerians to opt for healthier drinks.

‘‘I think it is a good thing for the masses. After all, Coke is not good for our health. It’s a way of telling Nigerians to live healthy, drink plenty water and save your money,’’ said Edozie Umejim, a Lagos-based engineer.

Obinna Ezugwu, a consumer in Lagos said, ‘‘its good news. At least, it would serve to discourage its consumption, thus reducing sugar intake and all that are associated with it’’

‘‘It is high time we stop taking chemicals that give us little or no value. Zobo, fruits, etc. are better than Coke, Pepsi and the rest,’’ said Felix Oloyede, another consumer in Lagos.

BIG Cola drink came into the Nigerian soft drink market in October 2015, offering consumers more quality and quantity for lesser amount, by selling 65cl at N100, against competitors’ 50cl for N100.

Two months later, Pepsi, one of the dominant brands responded to the competition with the launch of its new 60cl ‘Long throat’ bottle, retailed at the same price. In reaction, Coca-Cola upped its game months later with the release of its 60cl pet bottle.

Amid the economic downturn, Nigerian bottling company and 7up Bottling Company reduced the sizes of their 60cl pet bottle by 16.6 percent to 50cl last year but Ajeast retained its 65cl pet bottle.

With the hike in the price of NBC’s products, consumers and industry analyst are watching to see if other brands in the carbonated soft drinks market will up the prices of their drinks or keep it flat to entice consumers and boost patronage.

BusinessDay had earlier quoted Temitope Oshikoya, CEO/Chief Economic Strategist at Nextnomics as saying, “Consumers have become more conscious, concerned and conservative because of the state of the economy. Consumers will proactively search for savings, they will remain brand loyal but only if the price is right,” said.

CHINWE AGBEZE