An African B2B e-commerce platform, TradeDepot, is delving into food production by launching its own food brand, Mangrove, to broaden its business scope.
The expansion into food production allows TradeDepot to move up the supply chain and offer affordable staples like rice, flour, canned goods, and sardines leveraging its platform’s data on retail demand and distribution network.
Similar to global trends, TradeDepot is introducing Mangrove to control pricing, ensure quality, and secure its market position in a sector characterized by stiff competition and low product differentiation.
This strategic move aims to benefit consumers by providing lower-priced options amid high inflation rates, although challenges such as increased working capital needs and operational complexities may arise.
Despite the risks, successful market penetration could lead to revenue growth and position TradeDepot as an attractive acquisition target for larger FMCG companies in the future.