Becoming a Coca-Cola products distributor in Nigeria is quite easy and straightforward so far you are financially capable and meet other requirements.
Coca-Cola products are one of the most sought after soft drinks in the beverage industry. It has a valuable and large market as almost everyone is aware of the brand’s products. In 2019, Forbes magazine regarded the Coca-Cola company as the 6th most valuable brand globally.
With about 250 independent bottling company that manufactures the company products, there are a lot of grocery stores, shops, outlets, and depots littered all around the world. With this, the products are readily available everywhere. Below is a complete guide on how to become a major Coca-Cola products distributor in Nigeria.
Steps to Become a Coca-Cola Products Distributor in Nigeria
1. Market Research and Strategy
To start any business including becoming a Coca-Cola products distributor in Nigeria, you need to have a business plan where adequate market research is carried out. This is to help you figure out the strategy required to make your business successful, the challenges you may face during the process, and the best place for your business site.
To be a Coca-Cola products distributor in Nigeria, you are expected to have a minimum of N500,000 to N2 million depending on your location and the economy. This is important because of the various needs of the business including Depot/warehouses, delivery truck or bus, employing of workers, business registrations, and others.
You can also start as a retailer if you don’t have such an amount or partner with individuals or organizations.
3. Registrations of Business Name
The next step is to choose a business name for your distributing business and register it with the Corporate Affairs Commission(CAC). This is essential as you will be dealing with the Coca-Cola company directly as well as other large corporations as customers. Not only does it protects and authenticates your business but it also gives you access to contracts, grants, and so on.
5. Corporate Bank Account
After the registration of your business name, you can then visit your preferred bank to open a corporate account. Mostly, what is required is just the CAC certificate, passport, and means of identification(National ID card, Drivers license, or Voters Card).
Read Also: How To Open Business Bank Account in Nigeria
6. Office and Depot Space
Of course, you will need a depot space or warehouse where your goods will be offloaded anytime you order for your products. An office where you will oversee the warehouse is also important. It’s usually better for each to be together to prevent stress. The location of the depot or warehouse is also important. Not only for good patronage but for an easily accessible place with motorable roads for delivering of goods by the company’s suppliers.
6. Register As a Coca-Cola Products Distributor
Visit the nearest Coca-Cola bottling office or depot to request a distribution form. Fill in the necessary details and provide the required documents. You may also need to deposit some cash or even write a cheque to seal the order of your first products
After completing all the above steps, you may wait for some days or weeks for the processing. Before going ahead to pay or complete your first order. Below is a list of things you may need in your offices later.
- Receipt book
- Office stationery
- Carbon copy paper and so on.
Is Coca-Cola product distribution and selling Lucrative?
Coca-Cola products selling and distribution is one of the most profitable businesses in Nigeria. Especially when those products are brought directly from the Coca-Cola company. Just because the company allows the product distributor to sell a crate with an additional N50 apart from the commission given.
Selling directly to large organizations, corporations, and individuals who need it in large quantities for different purposes makes it more profitable. For example, selling about 1000 crates of Coca-Cola products in a day means the Coca-Cola products distributor earns N50 × 1000 which is N50,000 daily. This is excluding the commission given by the company. The company gives a 3% commission for selling 300 crates, 400 crates for 4%, and so on.
Being a large company with a large customer base, the products are widely known. The company also gives branded gifts and souvenirs like fridges, banners, an umbrella, and other materials to help in advertising the products.
With the above guide, you should be able to start a Coca-Cola product distributing business in Nigeria.