By Princewill Ekwujuru

…Chi, Fan Milk, Viju battle for market share

Yoghurt producers are innovating with various flavours of    yoghurt products to sustain their  market share, a step that has propelled growth of the industry.

This came at the backdrop of  campaign by food nutritionists  insinuating that Nigerians are not drinking enough milk compared to global consumption rate. 

As a result of this,  there has been an increasing pressure on yoghurt producers to meet the growing demand for high-value yoghurt and sour milk products in the market.

This has led to the sub-sector growing at an unprecedented rate and the driving force behind this enormous surge is a combination of population growth, rising incomes and urbanization.

The producers are also positioning their products based on consumers’ health consciousness (products with low sugar and cholesterol), while paying attention to product repackaging and availability.

Yoghurt and sour milk brands produced along these lines of marketing mix are not relenting on their various positions in making price insignificant in the race for contenders in the fight for market share.

They have also embarked on promotional drive based on health messages, varieties and quality to enhance patronage and acceptance.

Consequently, strong competitive activities have also boosted growth with a wide range of the brands available on the shelves (including smaller pack sizes). Producers are engaging product innovation and packaging as well as strategies to bring the  products closer to consumers through direct marketing  and price discounting.

These developments have however heightened battle and quest for market shares among major producers of yoghurt and sour milk products such as Fan Milk  Nigeria  Plc, makers of Fan yoghurt of different variants, Chi Limited, producers of Hollandia yoghurt of different flavors,Viju  Industries  Nigeria  Limited,  manufacturers of Viju milk yoghurt brands.These are mixtures of  foreign and  local  investors in the business.

Some local competitors  include A. Gama and Company, makers of    Gama yoghurt, Niger State, Acity Foods and  Packaging, producers of    A-S yoghurt, Enugu State, Alemi Foods Enterprises, producers of Alemi Yoghurt, Al-Halal Yoghurt Company, in kano among others.

However, Vanguard Companies and Markets(C&M) findings show that the marketing battle has thrown up neck-to-neck battle for the soul of the market  narrowing the leaders to three brands namely  Hollandia  yoghurt,Fan milk  yoghurt    and  Viju  yoghurt.

But  C&M findings show that in 2016, the sub-sector recorded a negative performance due to economic recession and the depreciation of the Nigerian currency, which resulted in higher import costs and price hikes.

This year, however, the sub-sector bounced back with the economic recovery supporting robust growth in sales volume.    In keeping with this, the sub-sector benefited from a growing trend of consumers switching from unbranded home-made yoghurt and sour milk products to packaged and branded local alternatives.

Local unpackaged yoghurt varieties such as “kunnu and fura de-nunu” are traditionally   popular in Nigeria, and recently manufacturers have attempted to capitalise on this by offering consumers higher quality version of this,packaged and branded products with more novel flavours.

The packaged yoghurt products are typically positioned as filling and nutritious alternatives to soft drinks.

Nigerians now choose from an increasingly wide variety of drinking yoghurt brands for at-home and on-the-go consumption, and parents are becoming more aware of how such products can help to ensure a sufficient intake of essential nutrients that their children might not always get from drinking milk products alone. The findings also show that  Western-style spoonable yoghurt products are also gaining  popularity thanks to improvements in distribution via modern retail channels.

C&M  findings also show that Chi Limited remained the clear leader in yoghurt and sour milk products market.

Its  Hollandia  brand is available in a broad range of pack sizes, and is more widely distributed than other drinking yoghurt brands, because Chi has a well-established network for the distribution of its equally popular fruit juice products.

The company also provides strong advertising support for Hollandia, especially via electronic media and billboards. Advertising campaigns for the brand which mainly target women, children and young adults.

Consumers’ reaction

Of the number of product dealers and consumers that spoke with C&M, majority preferred Chi products.    Confirming, a distributor, Managing Partner of Igwebros Enterprises, Everest Obi, said Chi products records highest in the company’s sales ledger.

Another distributor and Managing Director, Olaoluwa Ventures, who deploys bicycles for distribution, states that Fan Milk is doing well in the market, but noted that at a time the company was distributing  other brands but noted that they  are gradually losing the market share to Chi brand.

Victor Unaeze, a consumer, says he prefers Hollandia yoghurt, but alternates with Fan yoghurt and  others never come to  mind.

Another consumer, Mrs. Annabel Nwokedi,  prefers    Hollandia yoghurt, because of  its convenient  pack sizes.

Prospects and experts reaction

Speaking, a marketing expert, Yeaka Udodirim of Martrix Marketing, a    Port- Harcourt based        marketing research firm, said:    “Yoghurt and sour milk products retail value sales at constant  2017 prices are expected to grow.    This would be a marked improvement. Though it should be noted that the sub-sector was skewed by unfavourable economic conditions over 2016-2017. “

In addition, he stated: “Economic recovery in Nigeria will bolster the development of the sub-sector towards 2022, as will growing consumer appreciation for the convenience, novel flavours and nutritional benefits of the products, particularly those positioned as healthier alternatives to soft drinks. Population growth in Nigeria will also help to drive demand for yoghurt and sour milk products over the years.”