A new leader has emerged in the evaporated milk segment of the dairy market in Nigeria according to AC Nielsen Retail Audit Data in Q1 of this year. The new report puts Hollandia Evaporated Milk (HEM) ahead of Peak Regular in South West and Lagos markets, which customarily are the biggest dairy markets in Nigeria.
The report stated that while Hollandia has been consistently gaining market, Peak has been losing grounds. Taking a look at the AC Nielsen Retail Audit data for the last 12 quarters, Hollandia Evaporated Milk has increased market share point by 7.4 while Peak Regular has dropped by 7.9.
According to sources, who does not want to be named, “Hollandia Evaporated Milk is ahead of Peak in terms of market share in Southwest. In Lagos, the commercial nerve centre, Hollandia Evaporated Milk is reported to have more than double the market share of Peak. A C Nielsen retail audit data says Hollandia Evaporated Milk has 33.9per cent, and Peak Regular 14.3per cent
Hollandia has always represented a universe of setting trends, In 2005, the “Pop Pour Throw pack” was launched opening a new frontier in small pouch/sachet type pack in the market, thereby making it possible for consumers who could not earlier afford Evaporated Milk to enroll into the category at an affordable price point.
In the same tradition of setting trends, a larger SKU known as “Pour Cap Keep pack” (215g) was launched in 2007. This pack denotes a huge innovation to consumers as the pack is convenient to use and “re-sealable” after being opened. It was always inconvenient for consumers to re-use and store after opening evaporated milk pack till the introduction and innovation of Hollandia Evaporated Milk 215g when the issue was resolved.
Given the taste and quality of the product, consumers have opened up a new pattern of consumption for Evaporated Milk with direct consumption. This has also led to a consumer benefit leading to category & brand growth.
Industry observers and consumers have now seen Hollandia Evaporated Milk as the benchmark of modernity, innovation and quality. “It is credited with better overall quality perception as compared to other brands in the evaporated milk category. No matter how old they are,” a consumer quipped.
It would be observed that brands under the Hollandia umbrella have been successfully launched and have received huge acceptance by consumers. Some examples are Hollandia Malt & Milk drink and Hollandia Yoghurt drinks in various formats ranging from 1 Litre to 315ml packs.
In stark contrast, all recent efforts by Peak to launch in the beverage segment, where Chi & Hollandia dominate, have been massive failures. Point in reference is Peak School Smart Flavoured milk launched in 2013. The brand was discontinued within a year of launch.
In present times, Hollandia dominates the consumer’s mind ahead of competition in terms of awareness, salience, usage and disposition as per every round of brand health tracks.
The Socio-economic challenges, which necessitate the rise in Dollar , naira getting weaker, the falling gross domestic product and export, dropping oil price, government and parastatal inability to pay salaries, and dwindling disposable income and consumption power, only brands that offer quantity, quality and affordability can easily connects with consumers.
According to Rotimi Olaniyan, President of Experiential Marketers Association of Nigeria, “Consumers would have a choice to make between products that offer just quality and the ones that offer quality, quantity and affordability.”
The difference between these choices has offered an opportunity for brands like Hollandia Evap to make inroads into the market and rightfully claim to be the real “Wazo” milk for Nigerians.