The Chief Executive Officer, FoodCo Nigeria, Ade Sun-Basorun, has urged consumer goods companies to reconfigure their product designs as part of new strategies to cushion the effects of inflation.
Sun-Bashorun made the appeal, according to a statement on Friday, during an interactive session with journalists.
He said, “Given its dependence on a buoyant consumer class, it should come as no surprise that the consumer retail sector is one of the most severely impacted by the present economic headwind.
“However, many operators are exploring alternative solutions to meet the challenge. For instance, rather than raise prices, some FCMGs opted for a slight reduction in product sizes so that they can remain within affordable margin. Also, there is also the introduction of miniature brand variants which seeks to meet consumers at a price point that they are comfortable with.
“Re-computation of recipes and reconfiguration of product designs is another option that has been explored. By re-visiting manufacturing and recipe formulation, companies aim to optimise costs while safeguarding product integrity. These innovations also extend to packaging where inventive designs are explored to streamline costs as operators continually explore avenues to reduce packaging expenses.”