No company can produce 100% fruit juice in Nigeria – Moudgil

Head, Sales and Marketing, Ekulo Group of Companies, Mr. Pawan Moudgil, speaks with BOSEDE OLUSOLA-OBASA on the return of Don Simon fruit juice to Nigeria

What is your plan for Don Simon’s return to Nigeria?
Don Simon is not a new brand. It was in Nigeria for over two decades. It used to lead the fruit juice market before the Federal Government placed a ban on imported fruit juices. It was dominant in the minds of Nigerians. I am talking about the year 2002, when the ban was enforced and the juice brand was phased out, but we continued with other Don Simon variants – wines. Those times, we were already selling up to 24m to 25m litres annually.
Don Simon comes from a Spanish group of company called J. García-Carrión. We had a plan to return to Nigeria but we did not want to do a poor job. We wanted Don Simon fruit to return and stay. So for those periods after the ban, we strategised to give it a great re-entry into the market. This juice is of the same quality you find in tens of countries of the world. We started producing Don Simon fruit juice in Nigeria in October 2012, but it was presented to the public in January. We only import the concentrates, but we produce the juice here. The concentrates are brought in from our farm in Spain. It is the greatest factory there with about 20,000 to 30,000 hectares of farm lands surrounding it. The fruits are planted, harvested and produced.
JGC has a history of decades of farming. That should assure our customers of the quality of fruits that we use as juice. It is still the same definition, the same international standard and taste around the world.
Do you think you can reclaim that share of the market?
Yes, and we intend to ride on the strength of the brand. JGC in partnership with Ekulo Group of Companies of Nigeria will make it happen. Ekulo has been in the fore of producing and distributing fast moving consumer goods in Nigeria for about three decades. We are noted for consistency and expansion. We have a strong network in terms of distribution. We have a rich knowledge of the Nigerian market and a good understanding of the consumers – we will leverage on all of that. Above all, the brand already has a name that almost every Nigerian can identify with. We have the loyalty of the Nigerian people and we are going to get that confidence back. We started with three flavours of Don Simon – pineapples, orange, multi fruta and now we have added apple to it. We will roll out other flavours within few months.
The group has a lot in its basket and expertise. We are working in partnership with JGC to project their products. We plan to establish a standard production line in Nigeria. We are working towards a system that is committed to boosting the economy of Nigeria through generation of more jobs. We hope to cooperate with relevant stakeholders to establish farm lands and improve the quality of fruits thereby increasing the average yield of the industry. We look forward to a fully-operated juice industry in Nigeria. That is from sowing the seeds to harvesting and producing into desired end products.
Why can’t we have pure fruit juice instead of concentrate?
It is not possible to produce 100 per cent fruit juice in Nigeria.
Why?
You take few oranges and squeeze them, what is the quantity of juice that you have in the glass? The concentrates were made from actual fruits from our farmlands in Spain and imported to us in Nigeria to reconstitute as fruit juices. The sugar used is from farm produce. Some people stay away from juices because of sugar. They say it is bad, but that is not the fact. Sugar is from a natural fruit. Taking excess is what makes anything bad. When your doctor says cut down on your sugar intake, he actually means you should cut down on consumption of calories. Above all, people should do exercises that will help them burn off the excess. Companies that say their juices are just fruits are only looking for a niche market.
What are the challenges of producing in Nigeria?
The challenges are many because it is not easy to run a production line in Nigeria. But I wish that there was better power supply in Nigeria. It is currently very weak. I wish it was strong, production would have been easier. It adds significantly to running cost, which I cannot readily state.
What is the cost in percentage terms?
Power generation takes between 50 to 60 per cent of our running cost, while other factors take the remaining percentage. Other factors are really not as fixed as power.
Ekulo deal in wines too, how would you describe the wines tradition in Nigeria?
In terms of consumption of wines in Nigeria, I say that it is still at the very infancy stage. The development is still very low when compared to what obtains in Europe where no meal is complete without a glass of wine. In Nigeria, most middle class families do not take wine like that. Some reserve it for party times or at the weekends. It will take Nigerians quite some time to get to imbibe the wine tradition to that point. Socially and medically, the belief that a glass or two a day is good for health is also promoting the wine culture.
Wines are actually antioxidant drinks. They keep the heart healthy by fighting cholesterol. It also makes you look younger and relaxed. Speaking of wines and spirits as a major aspect of our business, I would say that it is still at the infancy stage. Our partners, JGC, are the number one producers of wines in Spain and the fifth in the world. We import wines from different parts of the world – Chile, Australia, California, France, and United Kingdom – among others. We have been in this business for about three decades so we have the expertise of picking the right and best kind of wines around the world. We keep very successful brands of wines and this has earn us loyalty from our clients. We hope to further build the culture of taking wines apart from party times in Nigeria.
But the average Nigerian family seeks three meals per day, not wine. Doesn’t this place a limit on your business?
The business is good and we have actually gone a long way in reaching our target market. The work is voluminous and there is still a long way to go. Out of the entire food, beverage, drinks market in Nigeria, you would find that wines and spirits only take about one per cent at the moment. So you can understand why I said it is at infancy; but that also means that there is more space to grow and the growth will be sustained.
The wines market in Nigeria records about 40 per cent growth rate every year. The fruit juice market, for instance, is already getting saturated, leaving room for very little growth. In terms of competition, we have stayed afloat in this business because of the loyalty of the people who patronise our wines. If some loves a particular brand he keeps asking for it and he trusts that we are always able to supply their choices. There is no end to the emergence of new wine brands. The market is very volatile. This is why a new wine consumer may find it difficult to pick a wine at the wines shop. The variety of bottles are so wide that he doesn’t know which one to pick, except he already had a brand in mind. What we do in such cases is to provide mentoring for first customers and that helps them to make better choices.
How do you hope to attract the medium income earners’ class?
Every brand comes with a price for every class of consumer. There are wines that are quite expensive and they have a niche mark. But there are also quality wines at lower prices. They come in different price brackets and the prices are determined by the place it was sourced – the company, the country, the unique selling proposition and so on.
There are some wines that cost as low as N350 in tetra packs. For the ones in bottles, some cost about N4,500 to N10,000. The price tells the niche. There’s no limit to the prices, some wines cost N30,000. A bottle of champagne for instance can cost as high as N200,000 to N300,000 and even more. It actually depends on its source, reserve, how old the wine is and the name in the brand.
So wines define class…
Yes. Wines have a social status symbol and you know quality is never cheap. The higher the price, the better the wine quality.
How do you address anxiety over alcoholic content?
Yes the alcoholic wines could contain between seven per cent and 17 per cent. I have noticed that the Nigerian consumer is really conscious of the alcohol content in a wine because he doesn’t want to be dizzy. I see they always watch the bottle to see the indication. There are wines that are purely non-alcoholic for people whose religion forbids them from taking alcoholic drinks. These are ideal for people whose doctors have told to stay away from alcohol.
Do you drink wine?
Yes I do. I drink wine every night.
Do you get tipsy taking wine?
No. I do not, to be very honest. But if I intend to be tipsy then I would take it like that. But drinking should be done responsibly. You have to take cognisance of where you are – the club, at home, a friend’s house or in a place that requires that you still drive yourself. But the basic things to know about wines are that it helps you relax, boosts your energy level and helps you perform better.
How true is the assertion that wine enhances sex between couples?
I will explain it this way. If you take one or two glasses of wine it soothes your nerves, your mind will be relaxed. It is a general belief that when you are relaxed, you perform better, the same applies here. When you find out that you are feeling good, you will perform better not only in bed, but in all spheres of life. I am not a medical person, but what people need are things that can help to relax their minds and they will be able to take care of a lot of issues that bother them.