How to Start Coca-Cola Distribution Business

If you want to become a coca-cola distributor in Nigeria, then this post is basically for you. The Coca-cola brand has long been one of the most popular brands in Nigeria.

Coca-cola products can be found in every nook and cranny of Nigerian markets today, you might not need a soothsayer to tell you that Coco-cola as a brand is really booming in every front. It is one of the best business investments in Nigeria.

Coca-cola is the biggest brand of soda drinks in Nigeria, you might as well begin to consider how to become a Coca-cola distributor in Nigeria.  Besides, it is the go-to drink for all sorts of events in Nigeria which may range from birthday parties, wedding ceremonies, naming ceremonies etc. Soft drinks, in general, play a major role in the lives of Nigerians daily.

The distribution of coca-cola drinks is a marketable business in Nigeria because the daily demand of the brand is not slowing down anytime soon. It may interest you to know that those people who work with the Nigeria Bottling Company (NBC), the umbrella body under which coke is produced in Nigeria as major or minor distributors now smile to the bank daily.

To become a coca-cola distributor, one is expected to sell as a wholesaler to retailers like restaurants and shop owners. It is important to note that the supply of coca-cola drinks usually come directly from the bottling company. Do not mistake a supplier for a distributor, though both serve as wholesalers, there is a slight difference between the duo. In relation to the coca-cola company, the supplier is higher up the ranks and is responsible for supplying drink ingredients, machines etc. to the coca-cola company, while the distributor is charged with the responsibility of supplying drinks to retailers at wholesale prices.

Factors to Consider before you Become a coca-cola distributor in Nigeria are;

Startup capital

This is the first question that comes to mind if you want to start any business of any kind. You might begin to ask, how much can I start within the coca-cola distributorship business? There is not a fixed amount of money required of you to become a coca-cola distributor in Nigeria.

 

However, from my research, you will be needing from the range of N500,000 – N1million to begin the coca-cola distributorship business. If you know you can not afford the start-up capital, I suggest you either team up with someone and make it a partnership business or you can become a sub-distributor and purchase coca-cola drinks directly from the main dealer regularly.

How profitable the business is

To make profits when you become a coca-cola distributor in Nigeria, all depends on your volume of sale. If you as a distributor is able to sell 300 crates or 1500 crates of coke 50cl bottle for N1050 per crate in the space of three to four days daily, you would earn a huge profit of more than N60000. Let’s do the Math, you buy a coca-cola crate for 1000 per crate at the distributing price and you then sell it for N1050 per crate at a wholesaling price. That sums up to you making N50 per crate sold.

 

It is, however, important to note that, so long as the coca-cola company sells to you drinks at distributing price, you will not be able to sell above the distributing price if you go into the distributorship business as a main dealer or as s sub-dealer.

Sub-distributors may be allowed to sell a little bit higher, but you make the real gain as the main coca-cola distributor from the coca-cola company, your profits are based on the amount of coca-cola products you are able to sell daily.

 

Note that you can also become the main distributor and a sub-distributor of coca-cola products at the same time. Knowing the fact that coca-cola company is a big brand in marketing, commissions are then based on the quality of coke drinks you buy. For instance, the minimum commission is 3% per unit for 300 crates, it is most likely to increase to 4%, 5%, 6% 7% etc, as time goes on with the number of volumes you purchase.

How effective is your marketing strategy 

It is not advisable for a businessman to start up any business without knowing how effective your marketing strategy is. Marketing strategy involves planning the way you are going to sell your products to prospective buyers. In the coca-cola distributorship business, you can not make a quick turnover per unit if you do not have a good marketing strategy. You are required to target retailing sellers e.g Food canteens, restaurants, eatery, supermarkets, canned drink vendors, event planners, snack joints etc. Social media will be another good way to market your coca-cola business, you can show your followers on Twitter, Facebook, Instagram etc, that you sell coca-cola drinks and be sure to expect they patronize you.

 

Location

You will need to find a good place to keep your coca-cola drinks when you purchase them. A warehouse is what you should be targeting if you can afford one or a big shop, but having a small place to store your coca-cola drinks is not advisable. Endeavour your shop or warehouse is close to the traffic, this will enable prospective buyers to notice you more. A location with large parking space is also advised, this will enable retailers who buy in bulk to bring in their truck for a total offload.

 

Register your business 

This isn’t a must, but if you want to look professional, then you have to do it. You can register the coca-cola business you are opening with the CAC. It will also enable you to be recognized by coca-cola companies and give you discounts when you purchase drinks.

 

Types of soft drinks in Nigeria operating under the umbrella body of the Nigerian Breweries. They include:

1. Coca-cola
2. Seven-up
3. Limca
4. Mirinda
5. Pepsi
6. Fayrouz
7. Chapman
8. Sprite
9. Bigi

 

How to apply and become a Coca-Cola Distributor in Nigeria

The steps to apply and become a coca-cola distributor in Nigeria are very simple. The steps are as follow;

• Locate any Coca-cola company near you where they manufacture coke products.
• Tell them you want to apply for a form to become a coca-cola distributor.
• Make a cash deposit of large amount depending on what you want.
• Get approved in weeks and begin business.
• Give them information on where you sell the coca-cola drinks.

Coca-Cola Wholesale Price List

1 Crate – N1,050

2 Crates – N2,100

3 Crates – N3,150

4 Crates – N4,200

5 Crates – N5,250

6 Crates – N6,300

7 Crates – N7,350

8 Crates – N8,400

9 Crates – N9,450

10 Crates – N10,500

There is a lot to gain in the distributorship business of coca-cola drinks once you have the capital. I believe this article has assisted you a lot in your quest to become a coca-cola distributor in Nigeria.

You can leave a comment below if you have any question to ask us.

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