…as residents reassess loyalty to major brands
The one-week strike embarked upon by producers of sachet water in Benin City, the Edo State capital, was officially called off on January 20, bringing a collective sigh of relief to residents who had had to struggle with scarcity of drinking water as well as hike in prices by retailers.
The water producers under the aegis of Association of Table Water Producers (ATWAP) called off the strike after a series of meetings with the state government, according to a source at Notre Dame Table Water who pleaded anonymity.
The strike was prompted by a new levy of N1,000 that each water distribution truck was asked to pay per day, the Chairman of ATWAP in Edo State, Michael Ogbebor, said on Independent Television (ITV).
Confirming the call-off of the strike, the CEO of Clegie Table Water, Benedict Aigbedion, said, “After speaking with the government, the haulage fee was abolished, that was why the strike was called off.”
While the strike, which started on January 15, lasted, major ‘pure’ water brands halted production and did not distribute their products as their trucks that usually sold water along some major roads, including Airport Road, were nowhere to be found.
Sachet water brands in Benin City include Notre Dame, Olivia, Maria, Zoey, Big Joe, Avri, Noren, Cavali, Super Fine, Mosquano, Ivie, Abieyuwa, among others.
As the major sachet water factories tried to resolve the haulage levy issue with government, consumers found themselves contending with water scarcity. Retailers seized the opportunity to hike the price of sachet water. Some retail outlets along Airport Road sold a bag of sachet water for as high as N500, a significant increase from the former price of N300.
The scarcity and price hike created a window of opportunity for smaller water factories to thrive and grab some share of the market, and they latched onto it to meet the demand for affordable and accessible drinking water. With the major players temporarily out of the picture, smaller factories optimized their production processes, ensuring a steady supply of sachet water to fill the void left by the strike.
Speaking with The Nigerian Observer, Favour Kingsley, who said she found a water factory in her neighbourhood, shared how she stumbled upon this factory during the water scarcity.
“It all started when I went to my regular store to buy sachet water, and to my surprise, the shop had no water to sell. The retailer informed me about the strike affecting water factories. Frustrated, I began asking around the neighbourhood for alternatives, and that’s when someone mentioned a local water factory just a few blocks away where I could buy water,” Kingsley narrated.
The emergence of smaller manufacturers as reliable alternatives during the strike also prompted consumers to rethink their loyalty to major brands. As these smaller factories demonstrated their capacity to meet demand efficiently, they gained trust and credibility within their communities, potentially leading to a long-lasting shift in consumer preference.
A resident who asked not to be named said while he was looking for and not finding a particular major brand he was used to, he ran into a mini truck along Airport Road selling a brand that he had never heard of.
“I tasted the water, it tasted as good as the one I was used to. And they sold a bag at N260, cheaper than the other one, so I bought. I think I will stick to the new brand,” the person said.
This shift in consumer loyalty is even more likely as the optimistic news of the call-off of the strike has not brought about the anticipated decline in water prices. Contrary to expectations that the resolution would lead to a decrease in the price of a bag of sachet water, our findings indicate that the price of a bag of sachet water has gone up at the factories, resulting in higher retail prices. A bag of sachet water now sells at between N350 and N400.
“There is no actual difference between when they were on strike and now because the price is still the same. I plead with the government to help out,” said a resident, Emmanuel Oji.
Tracy Ohovwor, another resident, said she has had to cut down on her daily water intake as a result of the hike in prices.
“The strike really affected me; I’ve had to cut down on my daily water intake due to the high prices and scarcity. Now that they have called off the strike, I don’t think I will be able to buy a bag of water for N350 when I drink more than that in a week,” she said.
The water producers, on their part, say they are not finding it easy as the cost of production continues to rise, necessitating price increase in order to stay in business.
Justifying the increase in sachet water prices despite the government’s compliance with the removal of the haulage fee, Clegie Table Water CEO, Aigbedion, blamed the cost of material.
“What we buy at N2,400 per kg is now N2,500, not without mentioning the money for fuel and diesel which everyone knows has increased now. This is why we decided to start supplying at N300 against the initial N250, but we intend to start this increase on Wednesday, January 24, 2024,” he said ahead of that date.
