Fruit juice production business in Nigeria is liken to Sachet pure water production business, you can’t go wrong with it. The reason being that Nigeria is one of the highest consumers of fruit juice in the world coupled with being the biggest market in the African continent. A very good investment in fruit juice production in Nigeria will yield threefold of returns on investment within a short period of time.
50% of the more than 150 million population consume fruit juice on daily basis. No wonder companies like Chivita, Coca Cola, UAC, Leventis Foods, and others have been thriving in the business and making billions of dollars unannounced. Government ban on importation of foreign made fruit juice into Nigeria has further doubled the profit potential in fruit juice production business in Nigeria.
La Casera was sold for N40 before the ban on importation of canned fruit juice into Nigeria, the moment the ban went in place, the price of La Casera went skywards from N40 to N70. Now La Casera is sold for N100 as the retail price. I gathered from reliable sources that it take about N35 to produce and distribute a bottle of La Casera to the end consumer.
That means they have been a sharing of N65 profit per bottle between La Casera company and its distributors and retailers over the years. And this is just ordinary carbonated drink. Quality fruit juice is far more desirable and far more valuable than carbonated or energy drink and yield more profit on investment.
The fruit juice production is capital intensive but worth every penny of your investment. The good news is that there is still provision to start small and explore new frontier. Farmed fruits such as Pawpaw are not yet being commercially processed into fruit juice in Nigeria, leading to the wastage of this valuable and nutrition farm produce. This could be a new business opportunity for any entrepreneur who wish to invest in fruit juice production in Nigeria to bring new value.
Pick up the type of fruit juice you want to produce. It could be a Pawpaw base fruit juice as I mentioned above. You may choose every fruit juice drink or carbonated drink similar to La Casera. Anything quality will do for Nigeria, we just love drinks – simple but quality soft drinks.
Your business plan should focus on the aspect or type of fruit juice you have chosen to produce. Make your business plan as detailed and thorough as possible especially if you are going to present it to financiers. Include comprehensive details about the type of fruit juice you want to produce; three-year operating expenses; three-year profit projections; marketing and public relations strategies; analysis of competing fruit juice manufacturers; information about potential vendors and selling avenues.
Like I said earlier, I would recommend you go for flavors that are not very common in the Nigerian market yet. A completely different variety of fruit juice will give you added advantage and win new customers for your brand with such an incentive to patronize your product.
NAFDAC Approval is very important, you need to have this before engaging in the commercial production of any food, drugs, and beverages. Approach NAFDAC after you have successfully setup your fruit juice production plant, produce few bottles and take it to them for final approval. You must begin this process well ahead of time.