Energy and Sport drinks
Energy and sports drinks are becoming increasingly popular, especially among the youth. It is said that the major consumers of the products are between the ages of 13 – 35 years. Through research, it is believed that male consumers are the dominant consumers, with over 65% of the market.
The energy and sport drink industry is vulnerable to threats of reduced demand for their products because of an increasing number of health conscious consumers who are quite aware of the risk of consuming too much energy drinks; this is due to the fact that energy drinks are said to contain high amounts of sugar and caffeine, which are linked to high blood pressure, type-two diabetes, kidney failure, seizures, among others. However, the National Agency for Food and Drug Administration (NAFDAC) says that energy drinks registered by them has reduced amounts of caffeine.
The key driver for this segment is the increasing habit of late nights and clubbing by the Nigerian youth. Energy drinks are perceived to boost energy and might be an aphrodisiac.
Carbonated Soft drinks
This is the market for the product (Pepsi long-throat) we would be analyzing. Carbonated soft drinks (CSDs) are also forecasted to grow; though at a modest rate due partly to inflation but more importantly to the fact that more Nigerians are now becoming aware of the health implications of drinking carbonated soft drinks. CSDs, as they are often called have severe negative effects on health over long period of time. They have been linked to increase in obesity, high blood pressure, heart diseases, and stroke, among others.
The growth drivers in this segment of the beverage industry are the growth in the population, 170 million by some estimates, and the rise in income levels over the last 10 years, improvement in marketing strategies implored by the bottlers, better distribution channels, introduction of new products and better packaging.
The carbonated soft drink industry in Nigeria is dominated by the world’s biggest soft drink manufacturers, Coca Cola with its Coke, Fanta, Sprite, and Schweppes brands and PepsiCo, with its Pepsi and Miranda brand.
In the last 10 years, a new competitor has emerged in this sector. La Casera is experiencing unprecedented growth because it is a non-cola carbonate soft drink and has a popular Apple flavour variant that appeals to Nigerian consumers.
PepsiCo, Inc. is one of the largest food and beverage companies in the world. Frito-Lay is the number one global salty snack player, Pepsi Beverages is the second-largest beverage company in the world (with leading positions in both carbonated soft drinks (CSDs) and non- CSDs, including Tropicana and Gatorade) and the Quaker division has leading brands in oatmeal, cereal, syrups, other grain products and side dishes. The major rivals are Coca-Cola, Nestle, Kraft, Unilever, Groupe Danone and Dr. Pepper Snapple.
In Nigeria, Pepsi products are produced and distributed by the seven up bottling company which is one of the largest manufacturing companies in Nigeria. On October 1st 1960, the exact day our great country Nigeria won her independence, Nigerians also experienced the birth of a soft drink giant as the first bottle of 7Up rolled out from the 7up factory located in Ijora. Since then, the company continued to grow in the leap and the bound. In the late 80s, they established two more plants in Ibadan and Ikeja. In the early 1990s when Pepsi International took over 7Up international, they again got great opportunities to introduce the Pepsi brand to the Nigeria people. As of today, the company has its Headquarters in Beirut and operational base in three African countries; Nigeria, Tanzania and Ghana.
Vision & Mission Statement
The 7up bottling company (A subsidiary of Pepsi co.inc), list its vision and mission statement as:
To become the most admired and innovative company in Nigeria.
Inspire and refreshes a youthful lifestyle.
• Commitment and ownership – our people will describe the company as ”Our company”, reflecting the entrepreneurial spirit and sense of ownership. “Caring and rewarding” as the people in the company experience a feeling of brotherliness and freshness in their relationship with one another to build the organization. In addition, achievement by people are recognized and rewarded appropriately.
• Teamwork – Each of the employees recognizes the value of the skills, abilities and cooperation between relevant persons and the units towards delivering seamless and superior values.
• Integrity – Our people are reputed for unflinching uprightness and high ethical standards.
• Trust – The management has confidence that employees will act in the best interest of the company. Employees also believe that management will not harm them but will do everything possible to protect and further their interests.