Nigerian Starbucks’ copycat launches Happy Coffee

Must Read

TAJBank Launches Nigeria’s 2nd Non-Interest Financial Institution (Photos)

Abuja Nigeria   December 2nd 2019, TAJBank, Nigeria’s second Non –Interest financial institution, has announced the launch of its services...

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

Dr. Olugbodi Clinches Brand Leadership Award

In recognition of his giant strides and outstanding performance in the Integrated Marketing Communication industry, the Executive Vice Chairman...
- Advertisement -
- Advertisement -

Princess Adeyinka Tekenah: telling Nigerians there’s more to life than instant coffee/Grace Ekpu, for the FT

Princess Adeyinka Tekenah has a mission in life — becoming Nigeria’s Howard Schultz. “I love the Starbucks model, and I am determined to build a coffee narrative particular to Nigeria,” she says. Aiming at strengthening the coffee-drinking culture in Nigeria, she has been installing cafés with espresso machines into existing businesses.

Nigerian Starbucks’ copycat launches Happy Coffee
Portrait of CEO of Happy Coffee, Princess Adeyinka

In 2015, with a seed capital of $5,000 from the Tony Elumelu Foundation, a pan-African venture set up to finance promising business start-ups, the US-educated Ms. Tekenah created Happy Coffee, a local coffee franchise. It serves a Nigerian coffee blend, sourcing beans from women farmers in Taraba State in the north-east of the country and roasting them in Lagos. It caters for private and corporate events as well as bars and restaurants through pop-up stores.

The coffee economy in Nigeria is largely untapped: last year, it produced just 42,000 60kg bags of coffee, while Ethiopia, Africa’s coffee-producing powerhouse, topped 7.6m bags according to the International Coffee Organization (ICO). But there are 22 coffee-growing states across Nigeria and people are starting to drink more coffee. Consumer spending on coffee in the country will rise by 9.3 percent a year in the next four years, according to rating agency Fitch.

Read:  The Tony Elumelu Foundation Opens Applications for 5th Cycle of $100m Entrepreneurship Programme

“I wanted to find a way to provide more local coffee to the average Nigerian. Why shouldn’t someone have access to a decent cup of Nigerian coffee?” Ms Tekenah says.

Read:  Elumelu Challenges Japan – “Partner With Us In Empowering African Entrepreneurs”

Unlike Ethiopia, Nigeria does not have a strongly developed coffee drinking culture: while about half of all Nigerians drink coffee of some kind, they tend to rely on the ubiquitous small sachets of instant Nescafé. “We are an instant coffee country, so we need to move beyond that to create major awareness about locally grown coffee in order to impact the coffee industry as a whole,” Ms. Tekenah says.

The government provides no direct support to promote local production and consumption, so she has been learning the business from experts in Brazil, the world’s largest producer.

Read:  The Average Business Owner in Nigeria is a local government authority – Government Must Create Favourable Tax Policies, Says Elumelu

Happy Coffee now sells roughly 1,000 cups for N500 ($1.38) each — versus roughly N200 for a Nescafé ($0.55) — and 200 packets of 100 grammes of coffee for N1,400 ($3.87) each month.

“Promoting domestic consumption in producing countries is one of the best ways to increase overall coffee consumption,” explains José Sette, the Brazilian executive director of the ICO. “Nigeria, because of its population size, is a market that is underexplored.”

Interest in ground coffee is growing, but according to Fitch, weak consumer purchasing power means instant coffee will remain dominant.

Source Financial Times

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Pre-CPI report: Inflation rate to further surge in November

The Nigeria National Bureau of Statistics (NBS) in the coming week is expected to publish the November 2019 Consumer...

Oando PLC Announces the Successful Signing of Two Gas Supply Agreements with NLNG Limited

Oando PLC Announces the Successful Signing of Two Gas Supply Agreements with Nigeria Liquefied Natural Gas Ltd. Oando PLC (referred to as “Oando” or the...

Turkish Airlines Denies Suspension Of Operations In Nigeria

Turkish Airlines has issued, but not a detailed statement with regards warning by the Federal Government of Nigeria that it must solve ongoing baggage...

Procter & Gamble Nigeria Ltd Issues Disclaimer on Fraudulent Recruitment Offers

Procter and Gamble Nigeria Ltd. have warned unsuspecting citizens on fake job offers and employment scams. In a statement released by the Company, it...

More Articles Like This