Coca-Cola realizes 300% increase in sales from e-Commerce channels

Nigerian-based e-Commerce platforms like Konga and jumia have doubled down on their food delivery businesses, making a deal with beverage sellers to include their drinks as part of the meal offerings.

For example, a decent meal of rice and chicken is packaged with beverage drinks like Coca-Cola.

The taste and consumption preference of Nigerians has changed since the Covid-19 pandemic broke in 2020. Fitch however, explains that despite the growth in e-Commerce sales, reported sales are also in single digits when compared to sales from its existing retail sales channels.

“Over the past year, Coca-Cola Nigeria established partnerships with e-Commerce platforms, such as Jumia and Konga, to sell its products to consumers. However, while there has been good growth through this channel, it is coming from a significantly low base. The company reported that e-Commerce sales are in the single digits when compared to sales through existing retail sales channels. While still a niche offering in the country, the shift in Nigerian consumer’s purchasing patterns amid the Covid-19 pandemic will enable Coca-Cola to increase its e-Commerce sales through the ‘Direct-To-Consumer’ (DTC) channel over the coming years. We believe that this presents a significant opportunity for the company to diversify its route-to-market strategy while growing sales,” Fitch Solutions stated