TradeDepot, a leading B2B e-commerce platform, is entering food manufacturing with its new brand, Mangrove, aiming to provide affordable, high-quality food products such as sardines, rice, flour, and canned fish. Traditionally focused on connecting FMCG manufacturers with retailers, the company is now producing its own goods to combat rising food costs and inflation in Nigeria, which has reached 34.8%.
With shrinking consumer purchasing power, Mangrove seeks to eliminate the “brand tax”, the premium paid for well-known food labels, by sourcing quality ingredients at lower costs. Although not officially launched, Mangrove has already attracted distributors via TradeDepot’s online platform.
Mangrove’s Pricing Strategy: A Relief for Consumers
Mangrove’s products are positioned as a cost-effective alternative to premium brands. For instance, Mangrove’s sardines will retail at ₦1,050, compared to the ₦1,450 price tag of the popular Titus brand. This price difference could significantly impact low-to-middle-income families, enabling them to stretch their budgets further.
“We used to simply distribute for brands,” says Onyekachi Izukanne, CEO of TradeDepot to Techcabal. “Now, we’re integrating backwards into the supply chain by producing our own products and bringing them directly to the market.”
By controlling production, TradeDepot reduces dependency on third-party suppliers, ensuring price stability despite fluctuating market conditions.
From Distributor to Manufacturer: A Strategic Shift
TradeDepot’s move into manufacturing transforms its competitors—wholesalers and distributors—into potential customers. This strategy streamlines costs, enhances market control, and strengthens the company’s position in the FMCG industry.
“Our biggest competitor is the wholesaler in the market,” Izukanne explains. “They can cut corners in ways we can’t and have a different cost structure.”
TradeDepot’s deep knowledge of consumer demand and distribution networks gives it an edge, much like Amazon and Costco, which successfully built private-label brands using insights from their retail networks.
The company has also secured exclusive distribution deals with brands like Unilever and Prime Hydration (co-owned by Logan Paul and KSI), reinforcing its influence in the FMCG sector.
However, shifting from distribution to manufacturing comes with challenges. A former FMCG executive, speaking anonymously, warned:
“When they focused on last-mile distribution, they sourced products locally. But now that they are manufacturing and importing, every extra day outside schedule incurs additional costs.”
To adapt, TradeDepot has adjusted its logistics model, now outsourcing distribution to third-party providers, allowing for scalability while maintaining its core business.
TradeDepot’s Unique Growth Strategy
Unlike competitors such as OmniRetail, which has expanded into fintech, TradeDepot is doubling down on manufacturing and distribution. This focused strategy could increase its attractiveness as an acquisition target for major FMCG companies looking to expand into Africa.
By launching Mangrove, TradeDepot is not only responding to Nigeria’s economic challenges but also reshaping the FMCG sector. Through affordable pricing, strategic distribution, and a consumer-first approach, the company is setting a new standard for food accessibility in Nigeria and beyond.
As Mangrove’s official launch nears, TradeDepot’s ability to balance production, pricing, and logistics will determine whether it can sustain this ambitious expansion and redefine the FMCG landscape in Africa.
