Coronation Research has just released its 2019 Consumer Report titled, ‘Power to the Price Point. The report which presents an in-depth analysis of the Nigerian food & consumer industry from data garnered from a detailed market study, is a radical re-interpretation of the developments in the industry and identifies the possible winners and losers in the sector.
In the report, Coronation Research asked the question: if Nigeria’s population is growing at 2.6 per cent per annum and the urban population is growing at 4.6 per cent per annum, shouldn’t food and consumer product sales, in inflation-adjusted terms, be growing at between 2.6 per cent and 4.6 per cent per annum?
In responding to the above question, the bank stated: “They should, but the sales of the main listed food and consumer product companies, when adjusted for inflation, are not growing in line with Nigeria’s population figures.
“A close look at some of the players within the sector reveals Nestle Nigeria has shown positive inflation-adjusted growth over the past eight years, but the record for Flour Mills of Nigeria, Unilever Nigeria and PZ Cussons Nigeria is open to question.
“One could then wonder, if Nigerian consumers are not buying the bulk of their food and consumer products from these companies, then who are they buying from, where, and at what prices?
“To answer these questions, Coronation Research devised a model household living on a modest income in Lagos and sent them shopping in outer Lagos. The shopping basket they brought back has not so pleasant news for the main listed companies.”