Mangrove is a new food brand from TradeDepot, a B2B e-commerce site that connects FMCG producers and retailers. The goal of this program is to alleviate the financial difficulties that Nigerian consumers are facing, especially in light of the naira’s depreciation and the ongoing rise in inflation.
The new brand promises to offer reasonably priced, basic foods such canned salmon, rice, flour, and sardines that are meticulously sourced to ensure great quality at reduced costs. Despite not being formally launched yet, distributors have already taken notice of Mangrove thanks to its website.
TradeDepot aims to provide customers with an alternative to the “brand tax”—the premium frequently connected to well-known food labels—by eliminating the middlemen. This action is appropriate given the rising cost of food since it aims to provide consumers direct savings.
According to TradeDepot CEO, Onyekachi Izukanne: “We used to simply distribute for brands. Now, we’re integrating backwards into the supply chain by producing our products and bringing them directly to the market.”
The pricing strategy of Mangrove stands in stark contrast to that of well-known companies in the marketplace. For instance, their sardines cost ₦1,050, which is significantly less than the well-known Titus sardine, which sells for ₦1,450.
Continuing Low-to-middle-income families may benefit greatly from this price reduction, which would allow them to save money for future needs or purchase more food.
TradeDepot is well-positioned in Nigeria’s food industry thanks to their foray into manufacturing, particularly given that consumers are dealing with an inflation rate of 34.8%. In addition to moving toward food production with Mangrove, TradeDepot is growing its market share by eliminating intermediaries.
BrandSpur business and economy news reports that the company may become a possible acquisition target for bigger FMCG companies as a result of this approach and its extensive retail network.
But there are fresh complications with TradeDepot’s new course. In contrast to its previous focus on last-mile distribution, the company’s move to manufacture and importation raises the possibility of production delays or missed deadlines.
Speaking anonymously, a former FMCG executive brought attention to the following problems, via TechCabal: “When they were only concerned with last-mile distribution, they could source products locally. But now that they are manufacturing and importing, every extra day outside schedule incurs additional costs.”
Once more, by entering the manufacturing market, TradeDepot presents its rivals—other distributors and wholesalers—as potential clients.
According to Izukanne: “Our biggest competitor is the wholesaler in the market. They can cut corners in ways we can’t and have a different cost structure.”
TradeDepot has a competitive advantage thanks to its extensive distribution network and in-depth understanding of the FMCG industry. The business uses data to help manufacturers decide on the most effective distribution plans, which helps to improve market access and streamline logistics.
Furthermore, Unilever and Prime Hydration, a beverage brand that Logan Paul and KSI co-own, are among the well-known brands for which TradeDepot has obtained exclusive distribution rights. Its significant influence in the FMCG industry is further reinforced by these exclusive agreements.
The company has modified its logistics model in response to its growing activities, depending increasingly on outside suppliers to manage distribution. This modification enables the business to scale more effectively while concentrating on its primary function of facilitating the connection between manufacturers and retailers.
Unlike other B2B e-commerce businesses like OmniRetail, which has branched out into fintech, TradeDepot has embraced manufacturing. By launching Mangrove and concentrating on manufacturing and exclusive distribution, TradeDepot is avoiding unrelated industries and guaranteeing direct value to its partners and customers.
