Hitting a BRIC wall

With growth in Europe static and fmcg groups struggling to find their stride in emerging markets, they’re eyeing up opportunities in the dark continent.

There’s a new ‘big five’ to watch out for in Africa. These aren’t wild beasts like lions, elephants, buffalo, leopards and rhinos. They’re a completely different kind of animal altogether. They’re global fmcg behemoths Nestlé (1), Procter & Gamble (2), Unilever (3), PepsiCo (4) and Coca-Cola (5). Of course, these multinational players, along with the likes of Diageo (22) and Cadbury – now owned by Mondelez (8) – have operated in Africa for a long time: over 100 years in the case of Unilever. According to this year’s Global 50 – a study carried out exclusively for The Grocer by OC&C Strategy Consultants – 29 of the 50 have already established an active presence in Sub- Saharan Africa beyond South Africa. So what makes Africa attractive, what are the barriers to entry and where do the biggest opportunities lie?