A Case Study of Nigeria Bottling Company

Topics: Coca-Cola, Soft drink, The Coca-Cola Company Pages: 5 (1287 words) Published: October 15, 2011

1. Investigate and Analyze the Company’s History and Growth.

The Nigerian Bottling Company came into existence on May 8th 1886 when the late A. G. Leventis founded the company. It was the first in this country to be offered franchise by an international “soft drink firm”. From a humble beginning as a family business, the company has grown to become a predominant bottler of non-alcoholic beverages in Nigeria.

The first plant, which was sited in Lagos, went into operation in March 1953. Coke was the first soft drink to have its own designed shaped bottles, which was different from the common trade bottles. In 1972, the company went public by the issue of 372,580 ordinary shares of 50 kobo each. This was in compliance with the Nigerian Enterprise Promotion Decree of 1972.

Some years after the Ibadan Plant was opened (though later shut down due to non- availability of good water in Ibadan metropolis) that of Port- Harcourt was established and many others followed of which Llorin Plant came into existence in April 1979 so as to be able to meet the demands of the consumers in the region. Ilorin Plant was mainly established to meet the needs of the people in Bida, Jebba, Ogbomosho, Okene, Oshogbo, Kontagora, Ijagbo, Offa, Lokoja and Ilorin metro- polis. The plant has 8 managers.

The range of soft drinks bottled by Nigeria Bottling Company, Ilorin Plant includes Fanta orange, Coke, Sprite, Krest, Bitter Lemon, Ginger Ale and Eva water. In terms of sales, the company enjoys a wide acceptance of its products. Ranging NBC Plc as a whole, its performance is highly appreciated.

The company presently has 13 bottling facilities and over 80 distribution warehouses located across the country. Since production started, NBC Plc has remained the largest bottler of nonalcoholic beverages in the country in terms of sales volume, with about 1.8 billion bottles sold per year, making it the second largest market in Africa.

Today, the company is part of the Coca-Cola Hellenic Bottling company (CCHBC), one of Coca-Cola Company’s largest anchor bottlers worldwide. CCHBC operates in 28 countries, serving 540 million consumers and selling over 1.3 billion unit cases of beverage annually.

The company is governed by a stable nine member board of directors comprising of very prominent individual who have excelled in different fields of endeavor within and outside Nigeria. The Board is headed by Ambassador Olusegun Apata while the management team is led by Mr. Ronald Ebelt, an expatriate professional.

Data Analysis

2. Identify Strengths and Weaknesses Within the Company.

The first and foremost strength the company has is its staying power - it has been in operation since 1886. It means it has survived all the challenges within the company and on its external environment over the years, decades and a century – and how many companies manage to do that?

Secondly, Coca-cola’s bottling system is one of their greatest strengths. It allows them to conduct business on a global scale while at the same time maintain a local approach. The bottling companies are locally owned and operated by independent business people like the Nigeria Bottling Company who are authorized to sell the products of the company.

Consequently and additionally, it’s Coke’s international popularity. The company is known throughout the world. People from all over the world purchase and drink the different products it has. Another strength is their “trade secret” which is the formula for Coca-cola – that distinct taste many has attempted to copy but no one has succeeded and is the reason why today, products their products are consumed at the rate of more than one billion drinks per day.

Last but not least, one strength of the company is the strong brand name it has,...
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