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Photo: Twinings Ovaltine
Global well-being drinks manufacturer Twinings Ovaltine is to invest US$32.2-million in a new factory in Lagos, Nigeria.
It will be the company’s first manufacturing facility in Africa and will produce Ovaltine malted drink products for West and Central Africa.
Plans for the new factory were announced during the official state visit of the President of Nigeria, Bola Ahmed Tinubu, to the United Kingdom. The factory is expected to create over 100 direct jobs.
According to Trendtype, the emerging markets consultancy, it will also reduce import dependence and allow Ovaltine to compete more effectively with Mondelez’s Bournvita brand, already manufactured in Nigeria, and Nestlé’s Milo brand, which is also produced in Nigeria.
“Historically, Ovaltine, which is ultimately owned by Associated British Foods, has been popular in markets such as Nigeria, Ghana and Cameroon. A local factory should help the company reduce supply chain costs, cope with foreign exchange shortages, and penetrate Nigeria more effectively,” Trendtype says.
Trend to local production in African markets
Comments BrandIQ, a Nigerian-based marketing industry news website: “Industry analysts say Twinings Ovaltine’s move reflects a broader trend among multinational consumer goods companies seeking to localise production in Africa’s largest markets to reduce logistics costs, manage currency volatility and respond faster to consumer demand.
“Nigeria, with its large and youthful population, remains one of the most attractive consumer markets on the continent despite macroeconomic headwinds.
“For global brands, local manufacturing is increasingly becoming not just a cost strategy, but a market penetration and resilience strategy.”
“By embedding production within Nigeria, the company is aligning a legacy brand with the realities of emerging market growth – where proximity, affordability and supply chain efficiency are key competitive advantages.”
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