Stories by Princewill Ekwujuru

BREAD producers are beginning to position their products based on innovation and product segmentation, while considering consumers health concerns and income bracket.

The health concern has to do with the reduction of sugar and removal of bromate (an ingredient suspected to cause cancer) from their products.

The ban on bromate by regulating authorities has also moved bread produces in making frantic efforts to improve on product varieties, repackaging and sizes to address the need for product value delivery.

They are also focusing on baking with other natural ingredients, like fruits and butter, some with even fish (nick-named Sandin bread) to attract patronage. Besides quality and innovations, consumers are demanding for pocket friendly products that fit into their income.

Product innovation and segmentation taking place in the bread market has also taken a toll on some of the manufacturers forcing them to play at the lower end of the consumer market.

This, however, has led to product segmentation into different sizes. The demand for the products is said to be rising as a result of increasing population and increasing number of confectionary outfits springing up across Nigeria, which said to be responsible for growth of the bread market.

One of the companies with heavy presence in the market is Leventis Nigeria, producers of Value Bread, Food Concept, manufacturers of Butterfield bread, Queens Meal Food Limited, makers of Queens meal, Bread ‘N’ Bake Confectionery Limited, producers of Daily meal bread, Crust Bakery Limited, manufacturers of   Top Crust, Rehoboth Chops & Confectionery Limited, producers of   Rehoboth Biggie.

Other brands are produced by fringe bakeries scattered all over the country which include the popular Agege bread. There are two types of bread in the market, the unsliced and sliced.

Of these products, three brands have emerged top contenders for number one position, viz, Value Bread, Butterfield bread and Queens meal, the brands are not leaving any stone unturned in the bid to control a larger portion of the market share in the over 32 bread brands in the market, in exception of the fringe products.

Vanguard Companies and Markets, C&M, findings show that most of the producers have vehicles with which to deliver the products to the door step of the retailers, thereby eliminating the third party concept.

C&M  noticed that the strategy has helped the producers to reach the consumers faster and improved their sales margin.

Findings by C&M   also show that the bread segment of the bakery and confectioneries industry is expected to witness strong growth driven by the huge population of young people, growing middle class and the expansion of mass grocery retail channels in the urban areas.

Consumers’ responses

Consumers differ widely on their preferences for the bread brands depending on their choices and taste.

A retailer, Mrs Elizabeth Nnadi, said bread business is a risky business, breads need not remain in the shop for long, that is why most of the breads are delivered fresh from the bakeries.

On why people consume bread a lot, Mama Arinze, a retailer, said “the importance of bread as food has never been in question – There is hardly any tribe, religious group or race that does not eat bread. Therefore, dealing in bread as a business means you are dealing in product that is in high demand, and whatever return you are making from it, is going to be a stable return since you will be constantly having patronage.

Musiliu Olaiya, another retailer, said “bread has been the major food staple from time immemorial, that’s why everyone loves bread. Back in the ancient time, the word ‘bread’ denotes food in general and is still regarded so even to this day. Most families eat bread more than once every day and it can be eaten in various forms with different spices.”

According to a store attendant in a supermarket in satellite town, Lagos, who simply gave his  name as Mr Paul, “there are different bread brands in the super markets that the preference for different bread varies.” According to him, the most preferred bread  by customers is Queens meal followed by Value bread and Top Crust. Top Crust, he stated sells faster than Value bread and Queens meal because of the different in taste and sizes.

However, efforts made to speak with some of the manufacturers prove abortive as the numbers placed on their level were not connecting or picked, those who picked promised to call back but failed.