Since its foray into the market in 2001, La Casera has managed to leverage on its brand equity to carve a niche in the carbonated soft drinks sector of Nigeria’s food and beverage industry. Although, the beverage maker later took the back seat in the heat of stiff competition, it has renewed the push to reclaim its market leadership through the re-launch of its premier brand, La Casera Apple drink. Brand analysts say that this could spark another round of competition in the market AJOSE SEHINDEMI reports.
For investors in the Carbonated Soft Drinks (CSD) segment of the food and beverage industry, Nigeria’s estimated 170 million consumers with spending power, and a market known for its high Return on Investment (RoI) are too tempting to ignore. This was what prompted the foray 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 beverage market by the likes of Coca-Cola, Pepsi, and 7up. The La Casera Apple drink was the
toast of CSD consumers.
Packaged in easy-to-drink Polyethylene Terephthalate (PET) bottles, the non-alcoholic, pocket-friendly 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 by
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 may have re-strategized to push back competition and reclaim its market share. Apart from investing heavily in
machineries to increase its production line, the company recently re-launched its flagship brand, La Casera Apple drink.
The move is 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, last week, La Casera Managing Director Mr. Roland Ebelt 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-introduce 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.
During a facility tour of the company, Ebelt reiterated La Casera’s commitment to producing high quality products to its consumers. He said the company’s production line from start to finish is free of human contact, a major cause of food contamination.
At the re-launch of La Casera apple drink with the mantra ‘fresh new look’, its Regional Sales Manager, Mr. Vishal Kaveti, said although, 2016 was a bad year for the company, it has restrategized to call the short in the CSD segment of the beverage
The Challenges
Despite the re-launch of La Casera, some brand analysts who spoke with The Nation, said that the company’s move to reclaim marker leadership may 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.
A dealer, Mrs. Sikira Adenike, 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.
That is not all. The Nation learnt that workers and management of the company have been engaged in a face-off over the non unionisation of its workforce. In September 2015, over 700 workers and 600 casual staff of La Casera Company Limited were said to have been 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).
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 reclaimits lost market position, there were claims recently that the product was unfit for consumption because the product contained some harmful
ingredients.
But the management of the company swiftly denied the claim, and in 2016 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.
After necessary scrutiny, all the regulatory bodies gave the company’s product a clean bill of healthy. They certified the drinks safe for
consumption and urged Nigerians to dispel the rumours.
