Three Leading Industry Players Reveal:
- Hot Selling Products To Package And Make Money From
- How To Do This Business Without Owning Equipment
- Huge Local And Export Market To Exploit
- How To Market And Sell Your Products And Get Customers Coming Back
- How To Run The Business And Make Great Profit
Mrs. Funmilola Osifowora, Director, Adlov Foods Limited, Dr. Temitope Farounbi, Director, Temitope Hannah Farounbi (THF) Integrated Limited – Producer of Cassy Crunchies, and Mrs. Christiana Nwachukwu, Director, Wingrace Foods Limited all have one thing in common. They are entrepreneurs who saw that the working class group of the society, who make up a large chunk of our population, would appreciate having packaged local food stuff like Ogbono, which have been properly processed, such that they can cook them directly without having to do the preliminary work needed before cooking.
By making such food items available at a reasonable price, these entrepreneurs have cut down on the time for cooking such foods, and have also helped the customer to pick the best quality food stuff available, which they might not have found if they were to source the original food stuff themselves.
Speaking with SuccessDigest recently, they alluded to the fact that this business is highly profitable and that more opportunities are still open for people to come into the industry. They shared their knowledge and experience of the industry for interested individuals to have the relevant information about the industry that they can work with in starting and running the business to success. Happy reading:
What Are The Kinds Of Food Stuff You Package?
Funmilola says, “I package crayfish, ogbono, chili pepper (ata gigun in Yoruba), hot/Cameroonian pepper, beans flour and pepper soup spices.”
Temitope says, “Currently, we are into the packaging of food stuffs that are readily made – cassava products packaging - and we are making cassava flakes in form of cereals, which can also be had as snacks.”
Christiana, on her own, says, “Aside the soya powdered milk that we produce, we also package plantain, potato chips, and pap; I’m also into catering services.”
What Does Packaging Of Food Stuff Entails?
Funmilola says, “I actually help in easing the stress of cooking. What I do is to buy these food stuffs, take them to my factory, pick and clean them one-by-one if need be to ensure there is no stone or dirt. I also dry them if need be, after which I mill and package them ready for marketing. For instance, if you are a male customer, you just have to buy any of my products in the supermarket and you are good to go with your cooking.
“Moreso, Ogbono is a very sensitive food stuff product and it is not everybody that knows the good ones. So, as Ogbono is my major product thriving in the market, I go for the quality ones in the market, because there are varieties of it in the market.
“Well, aside my bestselling Ogbono, I have other two in the list to make them three – crayfish and hot pepper. My Hot pepper is also used by the Igbos because it is hotter and reddish than the chili pepper and to the extent that when it is being grinded, you can’t stay there. So, I have to go through that stress for my customers.”
Temitope admits that it is just a quickie on the go to have a quick meal. She says, “Actually, my product is made from cassava, as earlier said and we mix a few things with it to form a flake that you can have like a crunchy snack or put inside milk, as if you are drinking gari or cornflakes.”
Christiana also says that food stuff packaging business simply entails buying the raw food stuff materials, picking them, grinding them, and packaging them inside a container.
What Are The Processes Involved In This Business?
Funmilola says, “I will have to source for the raw food stuffs by buying them at the available market, take them to my factory, pick and clean them to make sure there is no stone or dirt in it, and then mill and package them ready for the market.”
Temitope highlights the processes involved as follow: get a readymade cassava flakes, mix them with honey, sugar and butter. Then you stir-fry and left in a cool-dry place to dry, after which you cut into chips and package it – note that what you stir-fry stays hot, but usually molded together.
What Are The Equipment Needed For Packaging These Food Stuffs?
Funmilola says, “I make use of stainless milling machine, as this is the directive and one of the requirements of NAFDAC. If you care to know, I am undergoing NAFDAC processing and I have been scheduled for inspection. I make use of drying machine for vegetables, I have sealing machine when I package with nylon, but presently I use non-disposable plastics, I use weighing machine to measure them in grams. I also have different silver bowls I make use of – these are the major equipment I use for now.”
Temitope says, “Generally, for packaging my cassava flake we use mixer, because we need to mix all the products together to give us a consistent flake. After doing that, there is need for us to get an industrial stirrer, where we pour it and it stirs itself under a particular heat condition. Once this is done, we will get a golden-yellow consistent flake and a propeller will have to bring it out, after which we spread and cut it. So, we need the mixer, stirrer, spreading tray, and the cutter, after which we seal it in a packaging nylon. Currently, our product is packaged and ready for sale in an hundred gram nylon.
However, Christiana says, “For now I don’t have any equipment for my packaged food stuff, I only contract Evina Foods for the packaging of my products – I just have to take my products to them, which they conveniently process for me under my supervision. Talking about the process at Evina where I use for my packaging, it is perfect, as they wash, grind, fry, and set in the machine for packaging.”
How Do You Effectively Market These Products?
Funmilola says, “I pitched my tent with the well acclaimed social media – as I sell bulk of my products on facebook, and also I use twitter. Off the Internet, I sell my products through the distribution of fliers. In another development, aside my major target audience in Lekki and the Island, I visit various supermarkets myself with samples of my products. Even if some supermarkets seem skeptical about the products in the initial stage, customers do contact me after being satisfied with some of my sample products dropped with the supermarket.
“There is a limit I can go visiting supermarkets because of the challenge of getting NAFDAC number. Normally, one’s product shouldn’t be out yet without the organization’s approval, but owing to the fact that I have been to their office and have gone through series of processes, it gave me confidence to showcase my products, as they are already aware of them.
“The quest to market my products has also taken me to my church members. People who want to travel abroad do buy ogbono, crayfish and other products from me. On Sundays, I go to church with my products and anywhere I go, even at ceremonial events I give out my products as souvenir.
“So, apart from the NAFDAC number that I have not gotten, I have the Food Drugs Administration of the US (FDA) license to export products to the United States of America – this gives me an edge over others into the packaging of food stuffs.”
Temitope says, “We are just introducing our product, which is the first of it kind to the market. Firstly, we are looking at the product’s acceptability to the school children and to some adults. Secondly, we are in the process of getting our NAFDAC number so as to have it spread across the country.”
In her own way, Christiana says, “I take the products from shop to shop and I sell to individuals. At times, people, including friends, church members, and colleagues who have been aware of my products demand for it and I supply them.”
What Is The Startup Capital Like?
Funmilola submits that it depends on how and the level you want to start. She says, “For me, I didn’t start with very huge amount of money because I didn’t have such at hand then, even presently I have not met up with all the machines I need to buy. But what I did was that I started with the little savings I had – I started with less than N40,000.
“This was made possible by buying “derica” measurement of Ogbono. I actually started by undergoing a training session from someone who has been into this same business. It was during the training session that I was told that I didn’t actually need huge amount of money. So, I went to the popular market where I could get things cheaper.
“Anyone can start this business with the little money he/she has. If you care to know, I started the business packaging of picked beans, as it is where I got the business idea. I realized that people who love to eat beans will have to pick it first, so I started the business of packaging picked beans.
“Later, the package picked beans idea brought about and pushed me into packaging other food stuff products. In a nut shell, this business can be started with minimal capital, even as little as N20,000 by starting with only one product, unlike in my own case, as I started with multiple products.”
Temitope says, “For someone who wants to start this business, the range of N500,000 can be okay, but if you are looking at starting big, at least a startup capital of N2 million to N3 million would not be bad. In my own case, I have currently spent close to that amount.”
Christiana says, “If you want to start with the way and manner that I started, you will need to have a token of N50,000 to start. I did not start by having my own equipment. So, the aforementioned amount is for the purchase of the raw food stuffs and pay for the service of the processing and packaging company that will help you to process and package your product.”
Where Do You Buy Your Raw Food Stuff Products Cheaply From?
Funmilola simply says, “I buy my raw products majorly from Oyingbo and Mile 12 markets in Lagos.”
Temitope says, “The raw material of my packaged food stuff is cassava, so to ensure consistency and proper hygiene; we are collecting through a NAFDAC certified cassava and gari company. For now, we are using Tosmat Foods as the basis for our own raw material and then make something better from it.”
Are There Any Other Business Opportunities In This Business?
Funmilola reveals that there are lots of business opportunities embedded therein. She says, “For instance, as I’m doing this business, it has exposed me to many opportunities – one of which is that I do lots of seminars and trainings. Also, people employ my service as a consultant and I’m always on air on Inspirational FM where I talk on what I’m into.
“This has brought about interested people calling for training and mentoring, even on one-on-one training so to say. Also, people use to ask where I get the equipment I use, so you can as well go into the sales of food processing equipment. For instance, I realize that new entrants now make use of nylon, which I deal on. However, I have upgraded to the use of plastics from nylon which I use before though I still package with nylon from request by some of my supermarket clients. So, the question is why not go into the sale of packaging nylon and equipment.”
Temitope also says there are really lots of business opportunities in the business. she says, “For those who want to join the chain they can be our distributors or retailers, forming a kind of employment opportunity for them because it is a consumer product. Even for those who readily work with us, they have a secured job as long as they are working with us.”
How Lucrative Is The Business?
Funmilola confesses that the business is very lucrative, she says, “Though I might not be able to pin-point how lucrative the business is, however, I make bold to say that I have been able to start another business from what I realized from packaging and marketing of food stuff. Also, there are lots of products to be packaged – more than one thousand food products you can package.”
Temitope says, “Despite the challenge of acceptability that it is having now because of being a new product, it is still lucrative running this business. I believe once it is accepted and people see it as stable milk, flakes or snacks, the sky is going to be the product’s limit. This is because we are actually looking at having our products beyond the shores of this country – we are looking at other African countries as they take cassava flakes as their own staple food.”
What Is The Return On Investment Like?
Funmilola concludes that the return on investment is encouragingly high. She says, “Though, I don’t feel like placing an amount, but I have had the opportunity recently to be called from UK and within for partnership. Even though I have not put in my very best on a full time basis on this business as I have other commitments, yet I know what I’m getting.”
Christiana says, “For a start, at the small level, the return on investment might be between 40 and 50 percent, as you might be processing just a bag in a month. So, when it is continued and the level is stepped up doing like three to four bags a month, it is sure the return on investment will rise.”
What Are The Challenges Of The Packaging Business?
Funmilola says, “NAFDAC is our major challenge. This is because for you to register only one product you need the sum of N52,500, which is aside other analysis tests to be carried out– the charges are killing! The last time I met with the Director of Foods at NAFDAC, he mentioned that they are still trying to liaise with the Federal Government for the charges to be brought down for new entrants, as you are just starting and your products need to be in the market. Unlike the FDA license I talked about before, you are getting just only one FDA number for as many products as you might have.
“Marketing is another major challenge – for instance, some supermarkets will tell you they have their own packaged products, but when you get to check the products, you won’t find any producer contact on them – if anything happens to the buyer of such products, there is nobody to be held responsible. But my company is registered and I have a name to protect, so it means I won’t misbehave with quality. I will say this is not helping those who are trying to do business the right way.”
Being a new business, Temitope says, “The challenges are enormous and finance is one big one except you are able to get good investors or you have access to loan for expansion. Well, as for now people are accepting the product and are seeing it as being ingenious as they are seeing it every day – the comment we get is very wonderful.”
Christiana highlights the challenges as: lack of equipment, no access to good transportation system – struggle to the market and struggle back home, acceptability is not too encouraging and few helping hands, to mention a few.
What Prompted You Into This Type Of Business?
Funmilola says, “The first thing that prompted me into the business is that I have passion for business and entrepreneurship, as I have been and still into catering service.
“Secondly, the business is almost three years old, exactly about three years ago that I lost my husband, an unexpected occurrence that happened on our wedding anniversary as he was attacked by armed robbers. Most unfortunately, I was left with very young kids. Though, I’m a very young woman, I realized that I can’t just sit and look; I want to be there for the kids, I need to work extra mile, among other valuable things. So, the time I need to sit back and morn my husband was just sought out to learn tangible thing to do, even as I have had it in mind before. In a nut shell, that was how I started the business.
Temitope says, “I was actually inspired when I was in the UK from 2013 to 2014 where I noticed that they packaged everything including cooked rice. So, I found out almost all our food products are in waste in Nigeria – we are not able to package them such that we can keep them for subsequent consumption. Then, as I got interested in this area, I was thinking if cooked rice could be packaged; there are lots of food products to be packaged instead of throwing them away.
“So, when I came back to Nigeria, I thought that if someone can package corn to have cornflakes, cassava flakes in form of gari seems good instead of drinking as gari or eating it as “eba.” Now, if you make it and can add few things to it, it can become a household snacks or cereal for people.
“Also, we want to remove the stigmatization by some people who look down on those who drink gari and make them hide it under the table. The packaged cassava flake is done in such a way that it can considerably compete with other foreign foods – you can conveniently display it on your office table and people will see it as if you are drinking cornflake, but this is cassava flakes.
Christiana also says, “It was a vision I had, not that I dabbled into it just for doing sake. I had a vision to be a producer of baby foods and foods for Nigerians that will be affordable to most Nigerians and also be of good quality. In a nut shell, God gave me a condition that if I will do His work, He will show me what to do. So, as I answered God’s call, He gave me the vision and began to connect me with my helper.”
What Has Been Your Achievements So Far?
Funmilola says, “The fact that I could train people – teaching them how to catch fish and not giving fish to them alone is an honourable thing which I am pleased with. As earlier said, I was in Ghana in 2014 – an all-expense paid exhibition by the Nigerian Export Promotion Council, where I had the opportunity to exhibit my products, and presently, my products are being exported to Ghana. Not quite long I finished a scholarship programme mainly for women in business at the Enterprise Development Centre of the Lagos Business School. So, if I am not doing this business, I won’t have the opportunity to be one of those who were given the scholarship.
“There is another fact that it has exposed me to exporting, as I now know the right way to do things, though, I am still having some challenge in getting marketers. I have export license, but I have not been able to export en mass the way I want it. To cap it up, despite the demise of my husband, I have been able to sustain the family, as my kids attend one of the best schools around and the business has an edge over others. If I don’t tell you I am a widow you won’t know. If you care to know, I am and I have not been lonely because of the business – there is something to think about, there is a place to go, it has helped my thinking as a woman and I can get to any level I want to get to.”
Temitope says, though this is a new business idea, however, so far we have achieved acceptability for the product and that is very important to us. We are expanding; we started with a small drier, but now we are able to acquire few equipment and we are making it more industrialized.”
Christiana sounds a bit funny, as she says, “It has been “work and chop!” But to be candid, even with the level I started from, I have been able to keep the family going and to make ends meet, and my children are in standard schools. Most especially, the vision has not died and I’m looking forward to getting higher and grabbing more achievements in the nearest future.”
Your Advice To New Entrants
Funmilola says they should first and foremost look at what they have passion for. “I do tell people that they should not start the way and manner I started – starting with four to five food stuffs at a time. They can start with one or two products to avoid delay and they should start small. New entrants should also note that decisions should not be hurriedly taken,” she says.
Temitope says, “My advice to new entrants is to open their minds and eyes, as what you need to package are all under your nose. I was just happy to drink gari and thought of making it into something more sophisticated within my own house. You have a lot of things you can turn into a money spinning business.”
Christiana says, “I want to tell them that whatever vision God gives you, it must be kept, and that no matter how rough the beginning might be God will assist you to succeed. Like me, I started unnoticed, but I am known today, and as it is said “whatever you lay your hands on or finds yourself doing, do it well.” So, be strong and be courageous in whatever you want to do and do it without looking back – if you continue, you will be successful.
Culled from successdigest!!!
This is really interesting to read.
ReplyDelete