Gino companies which are located in the middle of Nigeria are the distributors of tomato products and are producing tomato paste at cheap and affordable prices.
The tomato is a popular vegetable that is actually classified as a fruit due to its high concentration of vitamin and mineral deposits. It is a good source of the antioxidant lycopene and is a common ingredient in the meals that are prepared in the homes of Nigerians.
read more:Tomato Paste Wholesale Suppliers
It can be added to salads, eaten fresh, or used as the primary ingredient in stews.
It is projected that Nigeria produces 2.4 million tons of tomatoes per year, making it the leading producer of tomatoes in sub-Saharan Africa and the thirteenth greatest producer of tomatoes in the world.
The fact that it has a relatively limited shelf life and a seasonal dual feature, which consists of periods of plenty followed by periods of shrinkage, has made storage a significant obstacle in the value chain of this nutritious vegetable or fruit.
Despite the fact that numerous nontraditional storage systems have been implemented in the past, all of them have been shown to be insufficient and unreliable.
Tomato paste is a refined tomato concentrate that is formed into a thick paste-like form and then packaged in tins or sachets. It is an alternative to the produce that is grown at home and a way to supplement the “inadequate” local supply.
In this week’s edition of Product Review, a weekly article in which we feature products contending for domination in the highly competitive Nigerian consumer market, we bring to your attention the various brands of tomato paste that are competing for visibility and profitability.
Product Review is published every week on Mondays.
The Commercialization of Tomato Paste
Research indicates that the most of the early brands sold in Nigeria were generally manufactured outside of the country. This is despite the fact that we are not quite certain as to who made the first famous jump into the market for tomato paste in Nigeria.
There are a number of different brands available on the Nigerian market at the moment.
There are also a number of indigenous players that have released their own brands, however the majority of them are still fighting to break into the domestic tomato market due to the large number of international tomato brands that are already there.
Main products such as Flavourful Tom, De Rica, and Festin, generated by Olam Worldwide, and Ric Giko and Nagiko tomatoes manufactured by Erisco Foods Limited are pitted against international brands such as Gino, St. Rita, and Vitalis, to name a few, in the emerging battle for supremacy among brands.
Gino, St. Rita, and Vitalis are just a few of the brands involved. Other examples are Sonia Tomato paste, which is manufactured by Sonia Foods Industries Limited, and Tomato Jos, which is manufactured by Tomato Jos Nigeria.
Both of these companies compete in the middle-belt regional market, which has contributed to an increase in the level of competition.
Due to the intense competition, the lead has been cut down to just a very few brand names (Gino, De Rica, Tasty Tom, Sonia, and Ric Giko), while other native brands such as Sonia and Tomato Jos are still fighting to establish themselves in the market.
Gino, De Rica, Tasty Tom, Sonia, and Ric Giko are the brands that currently have the edge.
Gino, on the other hand, has emerged as the reigning king over the course of the past few years, unseating De Rica as the leader after the latter had ruled the market like a behemoth for a considerable amount of time.
Only ripe tomatoes that have been crushed into a paste are used in the production of Gino tin tomatoes, which are then canned using the appropriate and hygienic techniques in order to provide meals that are both delicious and healthful.
The flavor of every food to which Gino Tomato Paste is added is elevated, and as a result, eating becomes an occasion worthy of celebration. Each carton of Gino tomato paste comes with 50 individual serving packets.
Observers of the market say that the producers of De Rica have become complacent as a result of their company’s history of success, which has led to them becoming overconfident and resistant to developments in the market.
Gino had already established a solid foothold in the market for tomato paste by the time the product from the Olam Group of firms was brought back onto the shelves, despite the fact that it had a stellar reputation for its superior quality.
Gino’s parent company, the Watanmal Group, appears to have perfected the act of designing the company’s offerings in such a way that it occupies a unique place in the hearts of its customers, whereas De Rica later had a re-launch campaign in 2012 on the radio with the slogan, “De Rica don come back.”
De Rica later had a re-launch campaign in 2012 on the radio with the slogan, “De Rica don come back.”
Why it has been so challenging for locally produced brands to compete in this market
The high cost of maintaining a plant in the country (Power, infrastructure, several taxations, etc.) has prompted several domestic manufacturers to shut down their operations, while international brands continue to enjoy success despite the competition.
Erisco Foods Limited, the factory that produces the most tomato paste in Nigeria, started the process of shutting down its $150 billion plant in 2016, which led to a reduction in the amount of tomato paste produced overall.
This decision was made in light of what Eric Umeofia, the CEO of the company, referred to as a lack of assistance from the government.
At this time, Nigeria was in the midst of a severe economic downturn that was brought on by a combination of factors including low oil prices, low foreign reserve levels, and high exchange rates.
There were significant barriers to entry for foreign exchange for manufacturing enterprises like Erisco Foods Limited. Despite the fact that the government is making an attempt to open FX windows for investors and exporters, this is still the case.
What feedback from customers looks like:
Ikeja’s Ipodo market was the location of a study that was carried out by Nairametrics in order to get a feel for the attitudes of consumers and merchants about these companies.
Many of the merchants believed that Gino’s popularity was due to the fact that it had been on the market for a long time, had a distinctive flavor, was thick, and had a characteristic red color.
Despite this, there are others who choose to do so for purely emotional reasons since they are unable to provide rational justifications for their desire.
Iya Ibeji, a vendor in the market, claims that the typical cost of tomato paste (also known as Gino) that is available for purchase in the free market is N50.
The price of a roll of 5 is set at N250, which brings the total price of a carton to between N2200 and N2300. On the other hand, a carton of the competing brand Tasty Tom can be purchased for N2000, but the unit price stays the same throughout the entire market.
According to the proprietor of a business in Agege, which is a suburb of Lagos, Gino has long since surpassed De Rica.
“Gino is the tomato paste that sells the most quickly. I have no idea why they purchase it, but the vast majority of my clients go with that option.
Another vendor who only identified themselves as Iya Lati provided more support for this assertion. However, they expressed alarm at the rapidity with which the price is being raised by the proprietors of the brand.
She admitted, “Because I have to create sales, I persuade them to go for other new products like Immaculate.”
Mrs. Joy is a die-hard fan of De Rica, and the reasons she loves it range from its sweet taste and red color to the fact that it lacks the sour taste that may be found in other brands.
“Unlike other brands such as Gino, it does not have a sour taste.”
It is interesting to note that in the market for tomato paste, the only brands that stood out as competitors were Gino and De Rica. As a result, brands such as Tasty Tom and Ric Giko got lost in the sea of other “small” companies.
Verdict
Gino received 52% of the votes in a Twitter survey organized by Nairametrics, while De Rica received 39% of the votes. Tasty Tom and Ric Giko received 6% and 3% of the votes, respectively.
According to observations made by Nairametrics, customers will always choose the brand that provides delectable and brilliantly red products.
The Gino brand does not appear ready to relinquish its firm grip on its leadership position in the marketplace as it recently introduced the Gino Pepper and onion mix, giving consumers the option to pick between regular Gino and the new variant.
This indicates that the Gino brand does not appear ready to relinquish its firm grip on its leadership position in the market.
But will De Rica reclaim his place at the head of the organization? This is dependent upon how quickly it needs it. If De Rica doesn’t get its act together and enhance its products, its success will be entirely up to chance and the passage of time.
Your comment submitted.