Growth amidst Counterfeiting

As the activities of promoters of fake products continue to hamper the growth of players in the herbal drinks market, Raheem Akingbolu calls on stakeholders, especially regulatory bodies and consumers to be vigilant as they explore the market

In what looked like direct response to public concern over the unbridled manner in which consumers patronise road side vendors for concocted local gin, otherwise known as ‘paraga’, a number of well-known manufacturers have, in the last eight years, ventured into manufacturing of bitters to bridge the gap. The story began to change when a Ghana based distilleries company -the Kasapreko Company Limited, entered the market in 2009 and began to distribute its popular Alomo bitters. With Nigeria population of over 150 million people, the fortune of the brand got boosted almost immediately.

However, the honeymoon didn’t last for Alomo bitters, as two factors humbled its rise. Perhaps because it didn’t manufacture in the country, Kasapreko found it difficult to check the influx of fake products that soon frustrated its growth. Another factor was the early discovery of the opportunities in the market by established Nigerian companies like Guinness Nigeria Plc and Intercontinental Distillers Limited. Guinness introduced Orijin bitters while Intercontinental Distillers Limited, manufacturers of Chelsea Dry Gin and Veleta came into the market with Action Bitters. The list also includes; Osomo Bitters (by Yem-Kem), Sapiro (by Yoyo Bitters), Agya Appiah Bitters (also from Ghana), Pasa Bitters, among others.

Few days ago, the market witnessed the entry of yet another product -Confam Bitters Schnapps, also from the stable of Intercontinental Distillers Limited. The launch of the new brand thus elicited further discussions about the growth of the market and various challenges faced by players, especially as it concerns counterfeiting.

In a well calculated positioning move, the promoters of Confam Bitters Schnapps settled for the busy Ojuwoye market in Mushin, for the launch amidst pomp. The event was graced by some distributors of the company, market union leaders and popular female Juju musician, St. Janet, who sang to the delight of the consumers present.
As if reading the mood of consumers as regard the challenges facing bitters manufacturers, the Head of Marketing, Intercontinental Distillers Limited, Mr. Bolaji Alalade said Confam Bitters would bring a total revolution to the bitters market. “Confam Bitters will deliver on all functional attributes that every bitter aspires to get. It will redefine completely in its sub-category. A Bitter that is mellow, truly herbal and delivers on all our expectations.”

According to Alalade, with its alcohol content at 28%, Confam Bitters was said to have low alcohol strength and offers a good Bitters experience. “Confam bitters is expected to be found in major markets, neighbourhood retail shops, bars and all other leisure destinations where young men and women have a relaxing time,” he stated.

Driving home his point, he was quick to add that with a number of bitters in the market, the new product stands out with a leafy dark green pack and a symbol of “thumbs-up” on the design. He specifically pointed out that it comes in a variety of sizes: 5cl, 10cl and 37.5cl.

Combating counterfeiting
Despite the huge acceptability bitters recorded within a short time, influx of fake products in the market has started affecting the bottom line of the market leaders. In the last two years, major stakeholders in the market have been involved in activities that would help the manufacturers nip in the bud, the continued influence of promoters of fake products. They have also made frantic calls to the government and its agencies to help them check the abnormal situation.

The Kasapreko Company Limited, manufacturers of the popular Alomo bitters appeared to be the most affected, perhaps because of the company’s poor understanding of the market.

Aside the deployment of various innovative mechanisms to control the ugly situation, the fact that companies like Guinness and Intercontinental Distillers Limited, are manufacturing locally has helped them to block the leakages. However, operators in the market require concerted effort to control the situation.

To control the situation, owners of Alomo too have involved in many activities. In Nigeria market, where the problem of fake products emanated, the company has, on several occasions, engaged its distributors and security bodies on how to collaborate to control the trend.

Partnership with trade partners
But beyond that, Guinness and Intercontinental Distillers Limited for example often involve distributors and other stakeholders in media tour of their factories.

Again, at venues where their products are launched, stakeholders, including regulators and distributors also participate in the activities to make them acquainted with the brands. By so doing, they will know the salesmen and be able to determine anytime perpetrators of fake products approach them for patronage.

This was what happened at the launch of Confam Bitters, where the Iyaloja General, Odi Olowo Ojuwoye LCDA, Mrs. Mufuliat Adebunmi, asserted that the makers of product, Intercontinental Distillers Limited, have an advantage in the market. To analysts, such endorsement, would make the brand be accorded immediate acceptability in the market.
She said: “Intercontinental Distillers Limited is doing well and people like their products and as a result, this Confam Bitters will move in the market very well”. She added that as it is the trend with the brand’s products, which are “Made in Nigeria” for Nigerians, Confam Bitters would take over the market in record time.

Also at the venue of the launch, what looked like the first experiential platform was created for the brand as random consumers at the market square were selected to sample the new Confam Bitters Schnapps and they all gave compliments to the new offering.

According to Kunmi Akanbi, who runs a retailer shop at Idi Oro, Lagos, the launch of Confam Bitters Schnapps has not only presented the Nigerian market with a new bitter, but has also offered the people what they want; low alcohol content and effective herbal properties.
Meanwhile, the company has announced that the launch train of the brand will soon begin to move around Lagos and outside the commercial city. It has also been announced that consumers can look forward to the exciting promotions which will soon be rolled out to support the brand.

Arresting the situation
To corroborate the efforts of the manufacturers, the Agency for Food and Drug Administration and Control (NAFDAC) and the police have tried to check the activities of the fakers.

For instance, there was a recent discovery of counterfeit products bearing Alomo Bitters value creation and brand identity but came with the name; “The Prince Alomo Bitters” and “De Kings Bitters”. They have the originals’ brand identities, such as colour, label, logo and label information in an attempt to gain part of the market share.

In the same manner, manufacturers of Action bitters and Orijin from the stable of Intercontinental Distillers Limited and Guinness Nigeria have also intensified quality control approaches to maintain standard. Aside exposing their processes to regulators and the media, they at various times embarked on activations to educate consumers.

Meanwhile, consumer activists have continued to call on government and manufacturers to intensify their effort in educating the drinking populace to be careful and wary of sub-standard brands out there in the market.

It is believed in many quarters that if the activities of the manufacturers can be supported by relevant stakeholders, especially consumers and security agencies, the problem of bringing fake products into the market would be solved.