How Dufil Prima led rice, pasta, and noodles category in Nigeria in 2017
Dufil Foods posted another strong performance in 2017 as it led the rice, pasta, and noodles category with 24 percent market share. Dufil’s success in the year under review was largely made possible by the strong performance of its flagship brand Indomie Noodles.
According to a report on Euromonitor, the leadership was made possible by a combination of factors including ensuring that its products were visible in major retailers, particularly through concentrating on good incentives for distributors, below-the-line advertisements, consumer promotions, as well as innovative packaging and product quality.
Dufil’s feat in its category is remarkable because rice pasta and noodles are staple food in Nigeria and as such they are more important than other packaged food. More so, the growth in Nigeria’s population and price instability of the last couple of years led to many Nigerians seeking cheaper means of consuming staples or to reduce consumption altogether.
But in the midst of the uncertainties, Dufil Food demonstrated an impressive level of consistency in consumer engagement through advertising, consumer promo and product innovation. “The company has ensured that its Indomie brand is visible in major retailers, particularly through concentrating on good incentives for distributors, below-the-line advertisements, consumer promotions, as well as making the brand available in a variety of pack sizes and flavours,” the report said.
The report also stressed that rice, pasta and noodles is predicted to record a 7% value CAGR at constant 2017 prices over the forecast period, which will be faster than the comparative average growth recorded over the review period.
This growth will be driven by the rising penetration of instant noodles as a cheap and convenient alternative to fresh food, while there is expected to be increased retailing of rice in smaller pack sizes in a wider range of distribution channels, as Nigerians would shop less in open markets, where they tend to buy bulk rice. A growing urban population would also boost demand, whilst economic recovery would enable affordability to grow again following the economic recession of 2016 and slow economic growth in 2017.
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