The Tolaram Group has unveiled plans to expand its cereal factory opened in December last year. The expansion is billed to cost N20 billion and is due to the factory hitting a 100% capacity utilization.
Girish Sharma, the chief operating officer of the Dufil Prima Group revealed this at a media parley organized by the American Business Council for Fast Moving Consumer Goods (FCMG) companies. The American Business Council is an affiliate of the US Chamber of Commerce.
Kellogg-Tolaram Nigeria Limited a joint venture between the Kellogg’s group of the United Kingdom and the Tolaram group of Singapore had established a joint venture in 2015 to develop snacks and breakfast foods for the West African region.
As part of the agreement, Kelloggs acquired a 50% stake in Multipro and has a right to acquire a stake in Tolaram Africa Foods (which holds a 49% stake in Dufil Prima foods).
New product offerings
Tolaram has introduced Kellogg’s noodles in South Africa and plans to expand to other countries. They will however not be launched in Nigeria, where Dufil’s Indomie is a dominant brand.
Challenges facing FMCG firms
At the event, the Marketing Manager, Kimberly Clark, Sub-Saharan Africa, Oluwakemi Saliu, stated that Nigeria could be an FCMG investor’s haven considering the rising number of consumers in the country, but there was an increased need to address the counterfeit and parallel trade issues.
“Local manufacturers are hard hit when parallel imports are allowed into the country for goods that can be produced locally.”.
To counter this, however, Kimberly Clark was producing items in smaller sizes that were suitable for the average Nigerian consumer.
Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. Examples include beverages, toiletries, and other consumables.