Yesterday, I stirred the honest nest. Truth was that I wanted to establish a point between the market shares of Coca Cola and Pepsi cos i was suspecting a shift.
In so doing, I had even missed out on the massive influence of the indigenous beverage – Bigi on the market share in that space.
Anyway, I put Bournvita and Milo as added flavor and received a very chocolaty result.
Milo had beaten Bournvita amongst the over 300 respondents resoundly in their estimation.
Reasons adduced by a vast majority of respondents include but are not limited to quality, brand perception, taste, packaging, and general poor perception of Bournvita amongst the buying public.
On the back of these, I did a report which tried to deepen the reasons given by the respondents and expand on it with the hope that it will get to the party as our own way of sending a robust feedback.
To my surprise, the report, which was only sent out on my WhatsApp, went viral.
It was shared amongst so many people, and grouping and feedback came back in torrents.
Someone said this person called the Duke of Shomolu may have overreached himself this time.
I heard it was put on the GCI alumni page, and someone there reached out jokingly – Edgar, I will report you to Babalakin, your friend.
Even the Lagos State Chapter of Association of Nigerian Authors got it and reached out.
Other blogs carried the report verbatim, and discussions on the matter went on for pretty much all of the day.
The next minute, I saw a chat from my friend Fred Mordi. Fred is the corporate affairs and governmental relations manager of Cadbury, which is a subsidiary of Mondelez International, which is in turn reputed to be the world’s largest in the space.
Fred and I have had a funny type relationship, and I must confess I really do not envy him.
His job has been to smoothen the relationship between his firm and irritants like myself as the firm struggles through a very challenging period.
In recent times, its ownership has changed quite radically, and I must say that the fruits of that have begun to show.
He sent me a press release, which shows that it recorded an increase in total revenues by over 30% to N55bn up from a little above N40b for dec 2022.
Furthermore, its gross profit hit 7b from the previous N6b year on year, hitting a 19% increase impacting on its net profit, throwing up over a 100% increase, and berthing at over N900m from the previous N400m
With this, earnings per share increased from 24k to 50k, making shareholders quite happy.
It’s Managing Director Mrs Adeboye, whose managerial skills seem to be touching up these figures in the press release announced a new product mix, which, according to her, is having this direct impact on the bottomline.
Furthermore, Fred sent in documents showing that Cadbury was also for the third year running nominated as top employer in Africa by the international Institute of Employers.
Well, I have refrained from comparing these figures with that of Nestlé foods for very obvious reasons.
The point of the survey was a push between Bournvita and Milo as two leading beverages.
I would have liked to see sales statistics from either of the two to see if the results of the survey can be justified.
Is Milo really beating Bournvita tin for tin, sachet for Sachet, and in which market segmentation and in which demographics
It is very clear that Cadbury had flown through very strong headwinds that would have completely destroyed any lesser company, and as such, its ability to fight in the marketplace robustly impaired.
But the truth is that they have hunkered down and have fought the good fight with the results as they can be gleaned continuing to improve.
My suggestion however to the management team of Cadbury which I must say are doing a great job judging by this figures as announced, is to look very carefully at the reasons adduced for Milo market superiority and address them very urgently.
I didn’t see any reforms with the Bournvita, which I dare say is a national brand, but instead, I saw an attempt to divert attention towards other product lines, which seems to be doing well.
Lines like the Cadbury biscuit, amongst others. Does this suggest a surrender in the chocolate drink war?
For those of you, especially my brother Wole and his group, who suggest that – How does Edgar expect sponsorship from them after lashing them like this?
Or the other group who has also suggested that – maybe he us looking for sponsorships – that is why he is lashing at them
I will say very clearly that sponsorship does not drive me. Those who relate with me will know this.
Access bank is my biggest supporter back to back and by far. They have given me sponsorship and support by over 100% of the second in the group, which is Zenith and Wema
But I have tongue lashed them variously to the point that some elements there have called to ask’ are you our friend?
Recently, I have taken a stance on the political structure of our nation, which goes against the grain as it concerns the Lagos State Government, which is my major sponsors and have stood.
So my ‘lashing’ of Cadbury has nothing to do with sponsorship or any of that but an unemotional analysis based on the frantic report of the survey that was thrown up.
Like I told Wole, sponsorship or the quest of it thereof is but a very little part of my corporate or business life.
I have built a network of over 10,000 potential sponsors, and if cos I ‘yab’ you, you turn your back, your business. Doesn’t shake me.
In conclusion, I love the urgent feedback from Cadbury, which shows they have not only built a responsive team but a team that is dogged and very clear as to their mission in the marketplace.
I wish you guys well
Nb, the press release mentioned in this write-up will be released on Thealvinreport.com later in the day.
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