Coca Cola Nigeria will get a $600 million cheque from its parent company in the next two years to invest in increasing product range.

By 2020, Coca Cola Nigeria will see its product offering extend beyond the soft drinks market. The move will introduce new products from the Coca Cola family to the Nigerian consumers. Among these are additional flavored soft drinks and iced tea but also condensed milk and bottled water. The company is set to reinforce its operation in Nigeria by extending its reach in the country’s beverage market. This strategy follows last year’s acquisition of a stake in Nigerian beverage manufacturer Chi Ltd. According to Peter Njonjo, the president of Coca Cola Nigeria and its west African operation, the goal “is to provide whatever beverages you need across your life stages”.

The investment is mainly aimed at increasing sales and address current trading challenges. Despite its success, Coca-Cola has not been immune to the recent economic struggles in Nigeria. The decline in commodity prices has made the country recently enter and emerge back from a recession. Inflation rates and the access to foreign currency, in particular – which the government has repeatedly tried to address – have significantly affected Coca Cola’s operation. According to Njonjo, “As disposable incomes start getting under pressure, expenditure in products like ours start becoming inaccessible to most consumers”. In response, Coca Cola increased prices and reformulated product packaging and sizing. Similarly, to address its foreign exchange exposure, the company plans to increase the share of locally sourced raw materials by 5%, from the current 70%.

Coca Cola arrived in Nigeria in 1953 when the first bottling facility opened in Lagos. Since then, and like in many other countries in the continent, it has become one of the most widespread consumer products available. Currently, the company directly employs 3,600 workers in Nigeria, operating 11 bottling plants and 30 distribution centres.