How to Become a Coca-Cola Distributor in Nigeria – Simple Detailed Guide

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.

 

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

Coca-Cola has many sublets where they manufacture coke products. The best option for you is to visit any of their depots within your location and speak to them directly. The essence of this post is to guide you ahead of the requirements that you need to become a coca-cola distributor in Nigeria.

Tell them you want to apply to become a Coca-Cola distributor

This is basically the reason why you are visiting the depot. If you’ve noticed for a while, you will see large trucks delivering Coca-cola products to distributors.

What happens is that they already have a long list of distributors and their locations. So once their drivers leave the depot, they head to the various locations of their distributors and make supplies. So when you get to their company, inform them that you need the form to become a coca-cola distributor. They will grant you audience and tell you the next things to do to proceed.

Make a cash deposit of a large amount

Since you won’t be getting the drinks for free, you will have to make a deposit that will cover your first supplies. Depending on the quantity that you want, you will have to pay for it. In most cases, you should have nothing less 200,000 {Two hundred Thousand Naira} to start up Coca-cola distribution business. It doesn’t mean that a lower amount can’t start, but this amount is ideal; since you will have more products and make more profit.

Get approved in weeks and begin the business.

The approval process doesn’t take time to conclude. As long as you have the money and have a good business plan to sell your product, you will be approved almost immediately to start up your business. To become a Coca-cola distributor in Nigeria, it is necessary you must have a plan of how you will sell the Coca-products as fast as possible.

Give them information on where you sell the coca-cola drinks.

The location of your storage house matters. This is where you will be selling the drinks to other retailers and consumers. If you have a good location, it will help you sell more products and make more profit.

Before you become a Coca-cola distributor in Nigeria, you must inform Coca-cola about your business location. This will enable them to know where you are – for supplies to your business.

 

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 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. Endeavor 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.

 

How Profitable is Coca-Cola Distribution Businessin Nigeria?

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.

Benefits of being a Coca-cola distributor in Nigeria

Good Profit

Coca-cola products are one of the fastest moving products in Nigeria. So if you are able to sell on a large scale and also in a good location, you will stand to make so much money. This is basically because of the volume of sales you will have every day and week.

Access to Free Gifts

I guess everybody loves free gifts, that is why Coca-cola gives its distributors free branded materials for their business. Free gifts that come in the form of Chairs, Fridges, Generators, etc. All of these are just to make your job easy and simple.

Less Work

You don’t need the stress of having a truck to bring in your products yourself. Coca-cola has made everything for you easy and simple. As long as your location is motorable, the company truck will deliver your products right to your store doorstep.

 

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

 

 

 

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.

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