In this interview with Abubakar Yunusa, the Managing Director of AJINOMOTO, Mr. Noriyuki Ogushi talks about the challenges, and projections for the business in the coming years.
How has AJINOMOTO contributed to job creation in Nigeria, from production to distribution?
Our company has established her factory and offices across Nigeria. We have more than four hundred and fifty (450) employees at the factory, and more than three hundred (300) in the sales force. Our distribution network spans across Nigeria, creating employment opportunities in transportation, warehousing, and logistics management. We are also cooperating with many distributors, wholesalers and retailers in our activities which have created various jobs and grow their businesses.
What steps has AJINOMOTO taken to promote sustainable business practices that drive long-term economic growth?
With producing safe and high-quality products, and visiting customers regularly to maintain relationships, we are realizing a stable supply, and ensuring Nigerian families have access to reliable products. We believe that steady everyday efforts with integrity will lead to long-term trust.
What social initiatives has AJINOMOTO undertaken to improve the well-being of Nigerians?
AJINOMOTO company is committed to enhancing the quality of life for Nigerians through various social initiatives, including sponsorship collaborations and partnership with groups, Associations and Organisations; but we think provision of our quality products itself is the most contribution to the well-being of Nigerians. With our products, the people can make delicious and nutritious dishes easily to their families. Furthermore, with using AJI-NO-MOTO® instead of some salt, the people can reduce sodium intake.
What are the long-term goals of AJINOMOTO in contributing to Nigeria’s economic development?
Through continuous investment in innovation and market expansion, the goal is to deliver quality products to all Nigerians and make all Nigerian families happy. As the result we can have bigger business and more employees which contribute to Nigeria’s economic development. However, when we achieved the goal, I think we are having a new further goal.
In this case, who do you think should be held responsible for the influx of adulterated MSG?
I think it is not a matter of buck passing that we are talking about here. It is the fact that we want to ask for more support from NAFDAC, SON, Nigeria Customs Service and law enforcement agencies.
We know that they are trying their best in this circumstance but we want them to do more. We want to appeal to NAFDAC to strengthen enforcement. Those who trade in this unwholesome business need to be tracked and sanctioned. The same thing also applies to law enforcement agencies such as the Nigerian Police Force. They need to help us in fighting this growing menace. Nigeria Custom Service needs to step up their game to prevent unbranded MSG from entering through our borders. I understand that these products come in large quantities through our borders. We need to step up enforcement to save the lives of consumers who are at great risk.
What strategies are you deploying to ensure that people are able to differentiate AJI-NO-MOTO® from the counterfeited products in the market?
AJI-NO-MOTO® is safe, hygienically produced and well packaged while unbranded MSGs are not packaged. It is the same as unbranded salt. [h1]
Of course, we know that not everybody in the market can be fooled. For the larger population, they know there is a sort of branding that is different from the rewrapped products. This is another key difference between AJI-NO-MOTO® Umami seasoning and unbranded MSG. AJI-NO-MOTO® product packaging features includes, the big red bowl mark pot, the AJI-NO-MOTO® name boldly written, the NAFDAC registration number and MANCAP seal of quality from the Standards Organization of Nigeria SON.
Beyond that, our products have quality assurance while unbranded MSGs do not. And also, internally, we ensure that we conduct a sample and quality test on every batch we sell outside the company. And if it doesn’t pass that quality test, we don’t distribute.
In terms of pricing, do you think AJI-NO-MOTO® is competitive enough?
Yes, I think we are. Our products are pocket-friendly and competitive. Even when most of our products are sourced from abroad, we still ensure that the prices are affordable to the generality of consumers.
But in the case of unbranded MSG, you said there was a system when you were having 70% market share. Now that there is naira devaluation, are they still selling at the same rates, their previous rates?
A: Yes, we have made adjustments to the pricing of our product. If you use the naira devaluation as a yardstick, you will realize that the new pricing is insignificant.
Can you give a conservative figure of your market share presently?
Generally, market share has dropped by 40%[NO2] . This drop could be attributed to some factors such as absence of fair competition. In a country where purchasing power has reduced, it won’t be out of place when you see people going for products that are least expensive. Now, with the influx of unbranded MSGs, many consumers have resorted to patronizing those dealing with these kinds of rewrapped products. This is because it is packaged in large quantities and sold cheap. Beyond fair competition, the government is not doing enough to protect the interest of consumers.[h3]
What intervention do you think the government needs to take at this point?
For us, we believe that the government has a crucial role to play in sanitizing this category. The government must ensure that the right thing is done by maintaining that all the companies and their products get registered by NAFDAC before they can be displayed or sold anywhere. Also, there should be strigent efforts to ensure all products, goods and services have the quality seal of SON. For those who are already operating in the market, the government has the onerous duty of removing them from the market to keep fair competition and protect the health of citizens.
What other strategies are you deploying to capture the other markets?
You will agree that we are doing a lot to expand our reach in the South. As you are already aware, the wrong perception or myth around the brand has always been strong in the South. But we are changing that. Currently we are deploying series of initiatives, communication and marketing strategies to gain market share in the South. For the North, we control up to 90% of the market share and remain committed to consolidating our hold.
Though we currently enjoy 10% from the South, we are optimistic that by the end of the year it would have increased to 20%.
Another key difference between AJI-NO-MOTO® and unbranded MSG is its packaging features, including the big red pot, the boldly written name, and the NAFDAC registration number.
