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

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Last Updated on January 25, 2021 by Mikebush The Rich Lazy Asshole

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 Coca-Cola as a brand is booming on every front. It is one of the best business investments in Nigeria.

Coca-cola is the biggest brand of soda drinks in Nigeria, and 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, ranging from birthday parties, wedding ceremonies, naming ceremonies, etc. Soft drinks, in general, play a significant role in the lives of Nigerians daily.

The distribution of coca-cola drinks is a commercial business in Nigeria because the daily demand for 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 them. About 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. At the same time, the distributor is charged with providing 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 straightforward. 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 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 areas 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 than 250,000 {Two hundred Thousand Naira} to start up a 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 your business. To become a Coca-cola distributor in Nigeria, 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 site, 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;

requirements to become a coa-cola distributor in Nigeria

Startup capital

This is the first question that comes to mind if you want to start 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 need from the range of N500,000 – N1 million 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 primary dealer regularly.

 

How effective is your marketing strategy 

A business person shouldn’t 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 right 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 them to patronize you.

 

Location

You will need to find the right 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 allow 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, 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 purchasing drinks.

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Navigate to https://publicsearch.cac.gov.ng/ComSearch/ for CAC name search. The next step is to reserve the business name and complete registrations.

How Profitable is Coca-Cola Distribution Business in Nigeria?

To make profits when you become a coca-cola distributor in Nigeria, it all depends on your sale volume. If you, as a distributor, can 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 massive 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, essential to note that, so long as the coca-cola company sells to you drinks at distributing price, you will not be able to trade above the distributing price if you go into the distributorship business as a primary dealer or as s sub-dealer.

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

Note that you can also become the leading distributor and a sub-distributor of coca-cola products simultaneously. Knowing 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, and 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 can sell on a large scale and 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 gifts. That is why Coca-cola gives its distributors free branded materials for their business. Gifts that come in the form of Chairs, Fridges, Generators, etc. All of these are to make your job easy and straightforward.

Less Work

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

Additional Income

The Coca-Cola business in Nigeria can serve as an additional income source while running other companies for money.

You can employ about two persons to overlook the business and another person for the distribution to make it easier.

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. Big

 

How to become a coca-cola distributor in Nigeria

 

Coca-Cola Wholesale Price List

1 Crate – N1,200 – N1,400

2 Crates – N2,400 – N2,500

3 Crates – N3,600 – N3,800

4 Crates – N4,400 – N4,650

5 Crates – N5,550 – N5,700

6 Crates – N6,500 – N6,700

7 Crates – N7,550 – N7,800

8 Crates – N8,600 – N8,800

9 Crates – N9,650 – N9,900

10 Crates – N10,800 – N11,000

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 questions to ask us.

Remember to share this post and get a gift from me.

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