adminCoca-Cola is the world’s most popular carbonated beverage. It has been around for over 130 years and remains a household name in Nigeria today. However, how do you become a Coca-Cola distributor? The process may seem daunting at first glance but fear not! Here we break down the steps to becoming a Coca-Cola distributor in Nigeria so that anyone can follow along easily.
Nigeria is a country in West Africa with more than 50 million people and a GDP of $400 billion. Nigeria’s economy is largely driven by the oil industry, but there are other sectors that are growing quickly such as telecommunications, banking, fashion, and music. The Coca-Cola Company has been operating in Nigeria since 1959 when they first introduced their product to the Nigerian market. Today Coca-Cola operates one of the largest beverage distribution networks throughout the country including over 600 outlets selling over 5 million cases per year (Coca-Cola).
Now let’s quickly dive in.
Who is a Coca-Cola distributor and what does it entail?
A Coca-Cola distributor is a person who sells the company’s products to retailers. Distributors are also sometimes called bottlers, and they have exclusive rights for distributing out drinks in their territories (Coca-Cola).
The main job of a Coca-Cola distributor is to buy or lease routes from other distributors that already have contracts with Coke and then sell those cases of soda at a mark-up price to smaller retail stores.
The individual must order cases of product through the sales representative assigned by the Company and deliver them either personally or hire someone else to do it on his behalf. In some places like Nigeria, there are no franchises so everyone has an opportunity to make money this way because anyone can apply as long as they’re 18 years old.
How much does it cost to be a Coca-Cola distributor in Nigeria?
It costs about ₦500,000 – ₦1,000,000 to become a Coca-Cola distributor in Nigeria.
The price is subject to change and does not include the cost of getting your own registered company or franchise.
What do you need to do if you want to become a coca-cola distributor in Nigeria?
You need to locate the nearest Coca-Cola bottler and then contact them directly.
Once you have obtained a franchise, you will be required to fill out an application form and submit all necessary documents in order to become licensed by the Nigerian government.
Coca-Cola requires that your company has at least two years of business experience before they distribute its products locally.
How to become a Coca-Cola distributor in Nigeria?
To get started with becoming a Coca-Cola distributor there are some things that you need before even making an application for registration as they will be needed during the process:
- A National Identity card
- A minimum balance of NGN 25,000 in any commercial bank account
- Nigerian Company Registration number as well your company’s [CAC]
- Trade license (for those who want their business identity established)
Then you need to locate the nearest Coca-Cola company around you and contact them directly. Once you have obtained a franchise, you will be required to fill out an application form and submit all necessary documents in order to become licensed by the Nigerian government and as well recognized distributor.
Coca-Cola requires that your company has at least two years of business experience before they distribute its products locally.
You should also be aware that the application process can take up to one month. Keep in mind, as well, that Coca-Cola will need to approve your franchise before you are able to sell their products or create a new distribution network in Nigeria.
In order for them to do so, they need proof of your experience and financial feasibility with two years of business experience under your belt already: this means that if you have been operating under one (1) year or not fully self-sufficient then unfortunately it is too soon for Coca-Cola’s consideration.
It is worth noting here at this point, however, that while there are no restrictions on how many franchises one company may possess within Nigeria – meaning it is possible for an individual to own more than one, and still work for Coca-Cola – in order to be considered as a candidate for the program {Distributor} you must first have been operating under two years prior.
Applications can take up to 2 weeks so it is imperative that you plan ahead of time and are not submitting an application at the last minute which defeats the purpose (unless of course, your experience meets all requirements).
Coca-Cola will review submissions on a rolling basis but keep in mind that they need enough time before their approval date or risk having items sent back without being able to process further requests.
The entire process should take anywhere from two weeks to three weeks if approved. You can find out how long it has taken others by asking distributors around you.
Consider Reading: How to start POS business in Nigeria
What are the benefits of being a Coca-Cola distributor in Nigeria?
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Huge Discount:
As an independent business owner with Coca-Cola, you will have access to exclusive stores where discounts on products can be used or even wholesale pricing available right from the beginning! This makes starting your own business a lot easier and saving money on the products means you’re already ahead of your competition!
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Access to free gifts:
As an independent business owner, you are eligible to receive two free cases of Coca-Cola products per month as a reward for your hard work and as well a refrigerator, chairs, and generator to faster your business sales.
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Access to making more profits:
You will receive a huge discount on all products sold. Plus, your Coca-Cola team is available to help with any problems that might arise and provide the necessary support for success!
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Access to training:
Coca-Cola provides all of its distributors with comprehensive training which includes how to make more sales as well as how to use company assets like promotional materials or even the new Sales Force Management System (SFMS). You’ll also be taught how to handle customer complaints in order to improve their experience at your store.
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Reasonable Costs:
Becoming a Coca-Cola distributor in Nigeria is very affordable due to high retail prices because it comes preloaded with many benefits including discounts on cases and access to all of the latest Coca-Cola products.
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Business Organization:
Coca-Cola Nigeria is a subsidiary of The Coca-Cola Company, headquartered in Lagos, and is registered with Nigerian corporate law as a limited liability company under firm number CCLN/2013/00339. This means that it will be easier than ever for you to get started because they’ll handle most of the paperwork!
The disadvantages of being a Coca-Cola distributor in Nigeria?
- The major disadvantage of being a coca cola distributor in Nigeria is the investment.
- Coca Colas requires an initial capital of ₦1000,000 to become a distributor and you have to spend more on running costs for your business including transportation, office space, advertising, etc.
- You will also need some knowledge about how the beverage industry works such as pricing analysis or marketing skills.
- Some people might find it difficult to do the job because of a lack of experience or expertise.
Read Also: 20 Businesses To Start In Nigeria With 10k,20k,30k,40k,50k Naira
How much money can you make as a Coca-Cola distributor in Nigeria?
Becoming a Coca-Cola Distributor in Nigeria is one of the best ways to earn an extra income. The rewards are endless and you can make as much money as you want. As long as there’s demand for Coca-Cola, we’re all set!
Coca-Cola distributors get commissions based on how many crates they sell each month up to their quota limit which starts out at 40 Cases per month. The commission increases as you increase your sales and keep exceeding the quota limit.
How to succeed as a Coca-Cola distributor in Nigeria?
to succeed as a Coca-Cola distributor in Nigeria you need to:
- have a good number of people that are willing to buy Coca-Cola from your store.
- be able to offer competitive pricing for the cans and bottles (as well as other drinks) compared with what’s on the market today.
- ensure that all operations run smoothly, including supply chain, distribution network, maintenance retail machines, etc.
- To succeed as a Coca-Cola distributor, you will also need business skills like management expertise or financial knowledge because it is not enough just having access to capital if there is no know-how how to manage resources efficiently!
With our complete guide to becoming a Coca-Cola distributor in Nigeria, you can be sure that your business venture will result in success.
There are also many other ways of how you can succeed as a coca-cola distributor such as by:
- having the right attitude and being flexible when it comes to meeting customers’ needs even if this means losing money for some time or taking risks (instead of just focusing on short-term gain).
- making good use of what is available at hand not only investing but also using resources efficiently with an eye on cost-saving! Be frugal with budgeting because these little investments make big differences in the long run.
Read Also: Business that moves fast in Nigeria
Conclusion
After reading this blog post, you should have a better understanding of how to become a Coca-Cola distributor and explore the different channels that are available for distribution in Nigeria.
In summary, it is important to be persistent with your local bottler and see if they will get back to you on becoming an authorized dealer. If not, then look into other distributorship options such as opening up a franchise or joining forces with another company that has authorization from Coca-Cola Company.
You can also start by selling products at small shops or kiosks before working your way up the ladder! Good luck with your venture!
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