“While flavoured milk is a very big market but low-margin, our target is the high-margin enriched milk drink segment which is in excess of US$100m [in value]. The dry spice market we estimate to be well over US$500m”
CEO of International Business-GK Foods Ryan Mack on Monday November 23rd 2015 as GraceKennedy launches Dunn’s River Nurishment line in Nigeria
Nigeria is about to get some serious Nurishment. GraceKennedy has launched their Dunn’s River Nurishment line, an enriched milk Drink in Nigeria (Collinder, 2015, November 25) long with a range of Dry spices.
Nigeria is a US$600 million market and the Grace Foods Nigeria pus is being monitored by Managing Director for Grace Foods UK Ltd with the help of their Nigerian Sales Representative. Grace Foods Nigeria’s main competitors, Sport Shake for the milk drink category and Maggi for the dry spice market, but they not going for any specific measurable growth.
Instead, they’re trying to associate their brand as one that make quality product at reasonable prices, a process that may take several years.
To quote CEO of International Business-GK Foods Ryan Mack: “[The] main challenge is to develop brand recognition. Most of our marketing activities will be around building product awareness and brand recognition”.
GraceKennedy Dunn’s River Nurishment line in Nigeria – Establishing a brand in the Continent with the Faster Growing Population
Gracekennedy has been Growing Strong, Game of Thrones style, with the company already eyeing 20% growth (Deer, 2015, October 31) from Amazon USA. Their Manufacturing, Grace Foods & Services and chain of supermarkets Hi-Lo are on a roll in the past three Quarters ending September 2015:
- JA$47.11 billion in total from their Food Division
- JA$40.148 billion in total from their Food Division in 2014
This represents an increase of JA$7 billion. Grace Foods & Services has been doing well, despite a US$26 million spend in July 2014 to purchase La Fe Foods Inc:
- JA$609 million in total from their Grace Foods & Services
- JA$879 million in total from their Grace Foods & Services in 2014
With such positive results thus far, promoting their brand in Nigeria to gain future profits is a long term bet on Africa (Deer, 2015, August 12), the continent with the fastest growing population by 2050 according to the UNDP (United Nations Population Division) by 2100.
- Deer, L. (2015, August 12). United Nations Population Division says 11.2 billion people by 2100 – Why Africa and India Population exploding as Insect Meat is coming. Retrieved from http://mythoughtsontechnologyandjamaica.blogspot.com/2015/08/United-Nations-Population-Division-11.2-billion-people-by-2100.html
- Deer, L. (2015, October 31). How GraceKennedy will achieve 20% growth in the USA via Amazon. Retrieved from https://lindsworthdeer.wordpress.com/2015/10/31/how-gracekennedy-will-achieve-20-growth-in-the-usa-via-amazon/
- Collinder, A. (2015, November 25). GK launches Dunn’s River brands in Nigeria. Retrieved from http://www.jamaicaobserver.com/business/GK-launches-Dunn-s-River-brands—-in-Nigeria_19240353