CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Distribution of soft drinks in Nigeria simply supplies the system through which the soft drinks are brought to the prospect final consumers within the Nigeria economy. Soft drinks are produced by the soft drinks industries within and outside the country and carefully distributed to the final consumers in order to complete the production processes. In the physical distributed to the final consumers in order to complete the production process. In the physical distribution of these soft drinks, basically, two various classified channels can be pinpoint or drawn, normal 3 – ways distribution channels (ie Manufacturers, Wholesales, Retailers – Consumers) and 2 – ways distribution channel (i.e. Manufacturers, Wholesales/Retailers – Consumer).

In the former, manufacturers of soft drinks carry their products in bulks of different brands to the deport owners (ie the wholesalers) and they in turn carry to the were shops or restaurants owners (ie the retailers) and these people sell directly to the final consumers in smaller quantities. While, in one latter, the manufacturers of the soft drinks, big hotels and restaurants where the final consumers buy or to the depots, where the final consumers can equally buy for big occasions.

There are many different soft drinks industries all over the world. Some concentrate on one brand of drink, while some operate on assorted brands in order to meet their customer/consumer targeted objectives.

Though, there are (3) principally recognized companies in the soft drinks production and distributions – (a) coca-cola company (b) Pepsi company and (c) Cadbury Schweppes.

Cadbury Schweppes recently emerged in 1995, when the acquires the Dr. Peper and 7up brands and began to competes with coca-cola and Pepsi.

Coca-cola Handling, Bottling Company produces, sells and distributes a broad range of beverage to meet the constantly changing tastes and needs of its consumers across 26 countries worldwide. Its products include;

a) Carbonated soft drinks – coca, fanta and sprite

b) Sugar – Free carbonated soft drinks – sprite zero, coca-cola light etc.

c) Juices, nectars and juices drinks – Cappy, 5-live, Amita, Friuce etc.

d) Ready – to – drink teas and coffees – Nestea and Nescafe. And any other numerous involve to mentioned.

These soft drinks productions involves mixing a number of ingredients including, water, sugar/sweeteners, colouring agents, and carbon dioxide. Soft drinks are sold at formations and some are equally sold as packaged in industry that 75% of all soft drinks sold in the U.S were in 4c packaged formed. There are certain substitute products of beverages in the market today worldwide such as; cold coffees, caffeinated and flavored water, carbonated flavored milk, fruit and vegetable juice blends, caffeinated orange juice etc. These soft drinks industries most seek official approval by the government regulative organs (National Agency for Food, Drug and Administrative Control, NAFDAC in Nigeria, Food and Drug Administration U.S.) before any of this products can be duly produced for consumption. Their inputs, raw materials must be tested and approved before their procession.

People’s preference and tastes for soft drinks continuously evolving and coca-cola company equally strives to offer an increasingly wide choice of beverages that meet those changing needs. growing categories to becomes a more diverse alcohol – free beverage company is a strategic priority for coca-cola company and in 2004, it produced and distributed more than 360 different beverage flavours and products, excluding packaging variation. In 2004, it distributed over 8,000 million liters of non-alcoholic brands, an increase of 40% over the previous year. (Annual Report, 2004) carbonated soft drinks still accounted for the largest proportion (77%) of sales volume in 2004.

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