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Home Uncategorized Huge revenue lies in wine and spirits industry, says Sobodu

Huge revenue lies in wine and spirits industry, says Sobodu

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Aderonke Sobodu is the Chief Executive Officer of Spronks Creations Limited, which is into wine and spirits as well as event management and hospitality.
In this interview with Senior Correspondent, GODDIE OFOSE, she bares her mind on efforts being made in local production and on the role of exhibition and fair in promoting a lifestyle associated with wine.

 

Wine and Spirits Fair

Aderonke Sobodu
Aderonke Sobodu

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The Nigerian Wine and Spirits Fair was borne out of the need to fill a trade gap between wine producers, importers, distributors and retailers in the business chain. It is also to encourage Nigerians because consumer experience is low. An average Nigerian has little or no knowledge about wine.

 

We realised there was a need to educate Nigerian consumers, which a lot of people will not do because they want to sell. The more you equip people the more they become aware of the norm, culture or style.

 

If you are selling 150 containers of wine to non-educated consumers, by the time they have a bit of education, they will probably realise that there is a limit to which they can consume alcohol. Through education, they will learn that consumers can get drunk.

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No matter how you educate them, there is a likelihood of your sales going up or down, depending on their level of education.

 

For instance, if you have been drinking Kanyin brand, you will understand that there are health implications in drinking that much and you will not want to do it. You will definitely want to do, maybe, two-thirds of it.

 

We don’t trade in wine but we believe someone must be able to do something right. The major focus for us is trade.

 

When I was working for a wine bar I used to have a load of emails from different producers around the world. Everyone wants to know about Nigeria because they know we have the population.

 

We received a lot of emails from importers and other members of the trade chain. We realised that there was a gap. With the exception of traders who attend trade shows around the world, most people who bring in wines are those who travel.

 

Foreigners are interested in our market, they want to come. But they honestly don’t know how to go about it. There is a lot of fear being expressed to avoid falling into the wrong hands. So, we realise that there must be something to fill that gap between producers and distributors, distributors and retailers.

 

A lot of people who bring in wines also don’t know how to go about distribution. We decided to create a platform through the Nigerian Spirits and Wine Fair to identify with retailers, and identify who their key distributors can be.

 
Difference between beer and wine

They are certainly not the same. Beer drinkers drink on the go, and at any point, but in the case of wine drinkers, it is a lifestyle. I don’t think both share any similarities. The way you drive Ferrari, Lamborginni is quite different from the way you drive Toyota.

 

No doubt, wine reflects class. If someone can barely feed in a day, it will be shocking to see the person buy a bottle of wine. But for beer, it is quite possible. People who drink wine hardly consume a bottle at once, except they are in a group.

 

Wine is appreciated. You appreciate the effort and the flavours that go into it. In the case of beer, you don’t need any skill. To drink wine, you need to adopt some measures and techniques.

 

Basically, it is all about lifestyle. Everybody can drink a bottle of beer but not everybody can drink a bottle of wine. Beer can be refreshing but wine is to be appreciated and consumed in a cool ambience or serene environment.

 

It can be consumed in the comfort of your home.

 
Lack of data success of fairs

I think, in total, we have had about 80 exhibitors. We have had a couple of them who have identified the product’s portfolio through the wine fair. We have numerous testimonies of wines which were on parade at the fair now finding their place on most shelves.

 

For instance, we have a producer from Chile with a large portfolio who is beginning to establish big presence. We have importers who have identified products to add to their portfolio because they attended the fair. These include retailers, distributors, and importers who now have contacts with hotels. Ditto consumers.

 

Recently, my sister told me about a wine that has been a preferred choice for her since the time she attended the show. It is a reflection of what happens at the fair. That is why consumers are given the opportunity to identify and experience the product. Producers will make their sales to the distributors, the distributors to the retailers and from retailers to consumers. In a nutshell, it is a trade chain.

 

Besides, this fair has helped retailers and producers to identify their target markets. So, there is a trade network created through this platform. We have succeeded in growing the wine market through the exhibition. Before now, there was little or no interest in the lifestyle associated with wine.

 
Local production in Obudu

One of the things we have done is encourage local production. We are making progress in this regard because we are in close touch with the government of Cross River State. However, what we have been encouraging so far is spirits.

 

We had a local producer last year who made Sapiro, Ginseng, lemon grass liqueur. Everybody knows the health benefits which can be derived from its usage. We are exploring, and plans are in the offing to commercialise it.

 

We want to explore production first by growing grapes in that region and thereafter commercialise it. At the end of it all, we will have a good bottle of wine being produced from that region.

 
Proximity to market

Wine cannot be produced everywhere. There is climatic condition you must consider in determining where a suitable wine can be produced. Apparently, the only two places where wines can be produced in Nigeria are Cross River and Plateau States.

 

These are the only two places that offer the altitude and cool temperature in which grapes can survive, except for organic production.

 

With the uprising in the North, you don’t want to cross that border. But at least, Cross River is still safe. We want to stick to Cross River for now. When security is brought under control or there is less tension, we may consider Plateau.

 

We cannot grow grapes in Lagos because the weather is too hot. You need a little bit of sunshine and winter. To grow grapes, you need a balance which is quite absent here.

 

The hilly nature of Obudu in Cross River supports the potential. You need all the geographical terrain to get the right soil, water, rainfall, and temperature.

 

For instance, there are some parts of South Africa that cannot produce wine while there are other parts of the country that can produce it in large quantities. If you have visited Cape Town, you will see that it has a lot of mountains. It has a very cool weather.

 

 

Message to pass across in this fair that is different from previous editions

 

 

For the sake of formality and those who don’t know, the theme for this year is “Consume More and More”. The addition of “more” is the entertainment part of what we do. Other ones are self-explanatory.

 

The self-explanatory part includes retailers and all those in the trade chain coming to sample wine, do business, and start trade. They are also coming here to have an experience as well as education. The difference is that since the fair began, we have had international wine spirits and wine.

 

When we changed it to Nigerian wine spirits and wine, people thought it was going to be an opportunity to get freebies and get drunk.

 

At the initial stage, they missed out on the trade and business aspect of it. This was not good for us, despite the fact that we had a lot of hotels, restaurants present. We wanted them to go back with something worthwhile. We wanted them to go back and testify that the supplier was found through this platform.

 

Doing so, you are taking a lot of stress away from them. With the fair, it is now possible to come and source for what they want. This is what obtains in trade fairs across the globe where people source for their suppliers.

 

 

What about the ‘drink and drive’ campaign

We are still carrying on with the ‘drink and drive’ campaign. We have been advocating that bars, hotels, and restaurants should never sell alcohol to children under 18. It is wrong. They are not at the drinking age. In some part of the world, drinking starts at age 21 but I think ours is 18.

 

So, if we are saying that drinking is at 18, we have no business selling it to teenagers. We are still continuing the campaign saying that after you have drunk, you should have a sober partner support beside you. Better still, if you are drunk, take alternative means of transport.

 

Come next year, we will be doing a lot of CSR (corporate social responsibility) initiative. We will also train 200 bartenders.

 
Feed back

So far, the experience has been quite wonderful and impressive. You see that in the quality of their bars and the feed back has been great. Even the hotels around are seeing the impact. There is nothing like giving back.

 

No doubt, the exhibition and fair, which is in the fourth edition, is fast becoming a big brand. There is an increasing interest in exhibitions as far as the wine and spirits segment is concerned.

 
What stands you out?

Some exhibitions appear similar but that of spirits and wine is quite different. For instance, if the oil and gas sector organises an exhibition, you won’t see break oil and lubricant on display. People come to exchange networks and contacts.

 

But in the case of wine and spirits, you want to create experience. A wine and spirits fair is all about lifestyle. Apart from this, you must understand the business. The business of wine and spirits is totally different from the way you do beer, coke.

 

Anybody can sell beer and coke but in the case of wine and spirits, the personalities involved are quite different. Wine is produced and sold in a very nice, classy environment.

 

People who have done one exhibition sometimes amaze me with their approach. You need to identify the lifestyle of wine and spirits before you can put up a show like that. Aside this, you must be a wine lover. If you are not a wine lover, you better be because you are likely going to be there for a long time.

 

That is why you understand that nobody will come from afar to sell a carton of wine at the exhibition. They want to talk business, meet with the hotels, beverage managers, and retailers. You cannot understand that if you have not been in that business.

 

A fair is about trade and business. People who come to our fair are not interested in selling cartons of wine but containers. The producers coming from Chile or Spain have no business selling a bottle or two. They want to know if you will be able to sell 100 containers in a year.

 

So, you need to understand that people who have tried to organise fairs like ours don’t have a clue about it. I have been in this business for 12 years. The exhibition is not one for making money even though money will eventually come.

 

It will take at least 10 years when you have the biggest show to attract 60 to 100 producers around the world coming to your show. It is when people struggle to sponsor your event because they identify with your brand. Once that is achieved, you can make money.

 

For those who have embarked on exhibition like this, I can see that they just want to make money straight away. But you cannot do it the way you do other exhibitions. It is an abuse of the wine profession and professionals generally.

 

Another area that sets us apart is the location where we stage our exhibition. You won’t expect that an exhibition of this magnitude is organised in crowded places. It is preferable to stage it among the high class in society.

 

However, the good thing is, if you are doing something and not successful at it, nobody will want to copy you. So, the fact that I have seen three people try to do this gives me so much joy and a sign that it has been right all along. You are doing something right that everyone wants to copy.

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