Consumer Goods Companies Use New Flavors to Attract Buyers Amid Inflation.

Companies that produce and sell fast-moving consumer goods (FMCG) in the largest economy in Africa are broadening their product options in order to increase their sales. This is necessary because inflation is increasing, which is causing people to have less purchasing power, and the cost of doing business in the country is also going up rapidly.

This method of dealing with the situation is also combined with other methods, like breaking down items into smaller packages (such as sachets) to make them cheaper.

According to a survey conducted by BusinessDay, several manufacturers of products like noodles and artificial hair extensions have joined beverage makers who produce both alcoholic and non-alcoholic drinks to introduce a wider range of flavors to attract the youth population in Nigeria. This group forms a significant part of the consumer market.

According to Uchenna Uzo, a director at the Lagos Business School, young people in Nigeria are prioritizing these products as one of the top 10 things to spend their money on. As a result, many FMCG companies are striving to keep up with this evolving trend by being innovative.

He expressed that the pace and trends are determined by young individuals, and it's not feasible to keep them interested with one or two product categories in the long run.

Eventually, their goals and financial statuses will shift, prompting them to search for new options. Yet, if you offer an assortment of options or flavors at varying costs, they can switch between them while remaining loyal to the brand," he explained.

According to Uzo, introducing more varieties of flavors can help to appeal to untapped sectors of the market or uncover potential new customer bases.

Flour Mills of Nigeria Plc's subsidiary known as Golden Penny Foods has just released a new type of noodle called Golden Penny Jollof Hot Hot Noodles. Additionally, Dufil Prima Foods introduced a new flavour named Indomie Jollof Chicken in November, as an addition to its already existing array of flavours.

The Tropical General Investments Group introduced a fresh taste for its Terra Seasoning Cubes called Terra Jollof Cube in the month of February.

The latest merchandise is an extra option next to the other tastes proffered by the organization, which include choices like beef and chicken.

A blog post on Prepared Foods reported that flavors generate buzz in the market since many shoppers are curious about experimenting with new tastes of familiar products.

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According to the statement, taste plays a crucial role for all parties involved, as it helps create a connection with customers. It is a fundamental aspect that can be recognized by consumers, sellers, those in the food industry, producers and growers alike.

According to Gbolahan Ologunro, a portfolio manager at FBNQuest, businesses have recognized that shoppers are mindful of prices, and overall spending in the economy is not strong. This comprehension has informed their strategic approach.

According to him, when new flavours are introduced, people tend to exhibit a common behaviour of testing and trying them out. This is based on the principles of consumer psychology.

The inflation rate in Nigeria made the news again. The figure rose up to 21.91% in February of 2023. This is quite high and marks the second month in a row that inflation has gone up. In fact, this is the highest rate recorded in the past 17 years. The National Bureau of Statistics in Nigeria shared this information. Furthermore, the rate had already been at 21.82% in January.

The cost of food continues to rise at an alarming rate, reaching a peak not seen in 17 years. In February, the inflation rate for food reached 24.35 percent, a slight increase from the previous month's rate of 24.32 percent.

During the past few years, several companies that produce items for consumers in the nation have launched fresh flavors as part of their strategy to gain a larger portion of the market.

Aspira Nigeria Limited introduced four different types of Viva Dish Washing Liquid with distinct flavors including Original, Anti-Bacterial, Sea Breeze and Zesty Lemon back in April of the previous year.

Nigerian Breweries Plc unveiled some new beverages under the alcoholic drinks category, specifically flavored drinks such as Star Radler's Red Fruit and Citrus variations. Guinness Nigeria also expanded their offerings in this area with their recent inclusions of Tigernut and Ginger flavored drinks, released between the years 2020 and 2021.

During the year 2019, Pepsico made a debut of three new flavors, which were Pepsi Berry, Pepsi Lime and Pepsi Mango. Afterwards, La Casera Apple decided to introduce four additional flavors called Bold Orange, Tropical, Bitter Lemon Extra and Ginger.

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In 2019, Coca-Cola Nigeria brought back its Fanta Apple and Pineapple Drink with a new launch into the market.

According to Ayorinde Akinloye, an investor relations analyst at Seplat Energy Plc, this trend of brands changing their taste to gain popularity and sell more alcoholic and non-alcoholic beverages is not going away anytime soon. It's a strategy that companies will continue to use to test the market and attract customers.

In the past year, BusinessDay stated that a few FMCG corporations have been modifying their merchandise by making them into smaller packets, commonly known as sachets, to make them more cost-effective. Although this trend is not new, the soaring inflation rate in Nigeria has resulted in many adopting this approach. This is due to the consumer's purchasing power being low which makes it necessary to cater to the high demand for food and daily necessities in more petite packages.

Last year, Ignatius Akpabio, who is the chief growth officer at TradeDepot, stated that due to a steady increase in food inflation throughout the year, retailers and consumers have been making the most of what they can afford.

As per his statement, individuals are trying to obtain the most advantageous perks for their cash, which usually entails purchasing less in more frequent intervals. "Numerous brands are currently providing smaller packages of their commodities or modifying the dimensions of their existing products in response to the increasing prices that the consumers are becoming more mindful of."