How To Become A Coca-Cola Distributor in Nigeria
How To Become A Coca Cola Distributor In Nigeria The Coca Cola brand is one of the favorites brands as far as soft drinks are concerned in Nigeria. And well, since the demand for soft drinks is not going down anytime soon; you might as well consider running a distributorship business for one of the world’s biggest manufacturers. The distribution of Coca Cola drinks and its other brands is a very viable business idea because the demand for Coca Cola products is certainly not reducing.
Here’s How To Become A Coca-Cola Distributor in Nigeria
1. Get your business registered
One of the first things you should consider when beginning a business is to have it registered. It is, without a doubt, the first step in becoming a Coca-Cola distributor in Nigeria.
To complete the formal registration process, you must register your company with the Nigerian Corporate Affairs Commission ( CAC). getting a CAC license normally does not take a long time to complete, say less than a month. Simply choose two business names that are appropriate for you. Then go to any CAC office in your vicinity to complete your business registration. A processing charge of not more than $50,000/ ₦ 40,000 will be required of you.
You’ve completed the registration process for your company!
2. OPEN A BUSINESS ACCOUNT
This type of business activity necessitates the establishment of a business account / cooperate account for your company. This account will function as a keeper for all of your company’s transactions, and Coca-Cola may require you to verify this account on a regular basis.
Creating a business account is a rather simple process; you can simply go to any nearby bank and ask to open a corporate account; the rest shouldn’t take long. To complete the registration process, you will need your visa photo, CAC paperwork, evidence of identification (voter’s card, driver’s license, public ID, etc.) and other relevant documents.
- Write a business plan
A necessary ingredient of any business is an effective business plan in place. And with good reasons. This will especially come handy for sourcing funds from financial institutions, angel investors, and other like finding options for startups. Without a business plan it’s almost impossible to successfully run your business. See it as a map to guide your business operations through a projected future.
- Locating a depot
Ensure that your depot is located closer to your target customers. This will make it easier for you to supply them and for them to easily reach you when need be. Keep in mind that you will be in constant transportation of products, so you want to ensure that your depot is located in an accessible area with good road networks.
The depot should also have a large enough landing place to accommodate one or two more long trucks. In addition, the warehouse should have enough room for free mobility.
5. ADVERTISING AND MARKETING
Coca-Cola, as previously stated, does not require much promotion. This is due to the popularity of the brand. However, you must continue to follow the company’s promotion and advertising strategy. With such well-publicized products, you can count on a steady stream of large consumers. All things considered, participating in promotions and following any current trends ensures that your customers will support your firm.
REQUIREMENTS TO BECOME A COCA-COLA DISTRIBUTOR IN NIGERIA
To become a Coca-Cola distributor, you must:
- Capital for Startups Requirements: According to information gathered, The minimum capital/investment necessary to start a Coca-Cola distributorship business is ₦2 million. If this appears to be too huge for you, consider pairing it with someone so as to reduce the funding load.
- Other requirements: The following are some important initial requirements for a Coca-Cola distributorship: You must pay for the containers and cases while purchasing the beverages. Consider all of the operational aspects of running a firm, such as obtaining supplies, transportation, deals, and distribution.
- Receipt handling: A printer should be available to print a receipt. This is a necessary expense.
- Coca-Cola distributors get free branded items: You have the right to request branded goods such as branded flex, push trucks, and so on. This will aid in the promotion of your company.
- Handling cartons: When dealing with your containers, you must exercise considerable caution. It’s a good idea to keep a variety of beverage sizes on hand, such as 35cl and 50cl, as well as different beverage compartments, such as canned beverages, packaged beverages, and plastic beverages.
HOW TO JOIN THE COCA-COLA COMPANY AND BECOME A DISTRIBUTOR
These are the procedures for becoming a Coca-Cola wholesaler. Follow the steps below:
To apply with Coca Cola as their distributor, follow these steps:
- Visit a Coca Cola company
- Request to fill a distribution form
- Deposit the minimum capital sum
- Follow any specifications
This is a simple step to step guide to registering with the company, and within a few weeks; all things being equal, you should be approved and granted distributorship rights.
How profitable is Coca Cola distribution business?
The profitability of Coca Cola distribution is majorly based on the volume of sales you make. This is so because in most cases, you just get to sell at a profit margin of N50. Meaning that if the company sells to you at N1000 per crate, you can only resell at N1050 per crate, which may sometimes appear little, but it’s not.
So, if you can sell up to 2000 crates on a daily basis, it can help to add up your profits, that is N50×2000=N100,000 on a daily basis.
Nevertheless, Coca Cola will always pay its distributors rebate per sales volume. The minimum is 3% per unit for 300 crates or cartons. This commission increases per unit, i.e, 4% per unit for 400 crates, 5%, 6% and so on.
Coca Cola distributorship companies in Nigeria
Below is a list of some Coca Cola distributors in Nigeria:
- Startup partners Africa.
- Nigerian Bottling Company
- Abuka and partners
- Ascentech
- Akerele Mega Mdc
- Coca Cola depot
Marketing, and everything marketing
While Coca Cola doesn’t require excessive marketing due to brand recognition; you, however, have to follow in the company’s tradition on advertisement and rigorous marketing.
With this kind of high profile, high – demand product, you are sure to always receive huge patronage. Still, partaking in promotions and any ongoing trends is sure to boost your sales volume.
Go ahead and launch your Coca Cola distribution business in Nigeria.
