An e-commerce platform known as TradeDepot, which facilitates connections between FMCG manufacturers and retailers, is venturing into the production and distribution of its food brand, Mangrove. This new initiative aims to provide consumers with affordable food options like sardines, rice, flour, peas, and canned fish, amidst economic challenges like inflation and currency devaluation.
Even though Mangrove has not been officially launched, it is already enticing distributors through its online platform. By offering essential food products under its brand, TradeDepot seeks to eliminate the extra costs associated with well-known labels, ultimately providing more economical choices for consumers.
CEO Onyekachi Izukanne expressed that the company is transitioning from solely distributing brands to manufacturing its own products and delivering them directly to the market. For instance, Mangrove’s sardines will be priced at ₦1,050, making them a more budget-friendly alternative compared to other popular sardine brands.
This move into food production by TradeDepot comes at a crucial time for Nigerian consumers facing economic challenges. By offering competitively priced products, TradeDepot aims to establish itself as a significant player in Nigeria’s food industry.
TradeDepot’s in-house food production could potentially make the company an attractive acquisition target for FMCG companies in the future. The company’s strategic positioning and distribution network could be appealing to potential buyers looking to enhance their market presence.
However, transitioning to manufacturing presents new challenges, such as import-related issues that could impact costs and margins. This shift also requires TradeDepot to adapt its logistics model to accommodate its manufacturing operations effectively.
TradeDepot’s decision to venture into food production sets it apart from other B2B e-commerce startups that have diversified into different sectors. By focusing on manufacturing and exclusive distribution, TradeDepot aims to deliver direct value to its customers and partners.