Adding sweetness and spice to life

ESTABLISHED in 2009, AACE Food Processing & Distribution is an indigenous Nigerian company that processes, packages and distributes nutritious food made from the best of West Africa’s fruits, grains, herbs, vegetables and cereals. Its product line consists of spices, spread, sauces, and complementary items made from raw materials sourced from farmers in rural communities across the West and Central African region, in partnership with community groups and non-profit organizations.

Spices like chili pepper, rice, ginger, suya (barbeque) and garlic spices; maize, soya and sorghum grains; and vitamin- and mineral-enriched sorghum, soya and peanuts marketed under the brand name SoSo Nourish, are among other products

The creation of AACE Foods by Ndidi and Mezuo Nwuneli,was motivated by the urgent need for nutritious food in the region. According to a 2008 Demographic and Health Survey, 41% of Nigerian children under five years are classified as stunted, 14% are wasted and 23% are underweight. While researchers at the University of Agriculture Abeokuta estimated that up to 60% of the fruits and vegetables grown by smallholder farmers across the county are wasted annually.

Another troubling statistic is that almost 90% of the processed food consumed in Nigeria has to be imported.

The company directly addresses these challenges, while capitalizing on processing and packaging healthy food using West Africa’s ingredients.

Using semi-automated manufacturing processes, the company transforms raw materials into spices, and complementary food and spreads. Through its innovative packaging, competitive pricing strategy and distribution approach, AACE Foods is gradually displacing imports currently purchased by commercial customers, and creating a new market among the local masses.

We speak to Juliet Fejiro, Sales and Marketing associate, about the company, its consistent growth and future plans.

The food industry in Africa is expanding, particularly for pre-packaged, convenience products. Where is most of the growth for AACE Foods particularly coming from?

The growth is being driven by two forces. The first is the growing populations across Africa, and the rapid urbanization, which now accounts for over 50% of the population in urban areas. As such, there is increased demand for convenience food products. For example, the fast food industry is growing by 30%.

The second big driver is the entry and growth of international retailers such as Shoprite, Game/Walmart and Spar. They have invested significant effort in changing mindsets and encouraging the masses of Nigerians to shift from the open air market to retail shops. This has obviously created a more organized distribution channel for FMCGs (fast moving consumer goods).

How was the company established?

Both Mezuo and Ndidi Nwuneli are graduates of the Harvard Business School and have had extensive experience in a range of sectors. They were committed to transforming the agricultural sector in Nigeria by serving as catalysts and put all their passion into getting the company to where it is today. Their focus is to become the preferred provider of food for West Africans, thereby contributing significantly to the improved nutritional status of consumers, and improved livelihoods of farmers across the region

What challenges has it faced along the way to success?

Operating in the Nigerian business environment has unique challenges. In addition to the infrastructure challenges – especially the poor power supply and roads – it has been a tough task to build a world class team, a local supply chain and change the mindsets about locally-made products. However, we have been able to surmount many of these encounters through the support of a strong Board of Directors committed partners, including a range of development partners such as Business Innovation Facility (BIF), African Enterprise Challenge Fund (AECF), IFDC and Innovations Against Poverty (IAP).

How do you assure consistent supply for your end products?

Our competitive advantage is that we have invested time and energy into cultivating relationships with farmer clusters across the North and Southwest. We have trained them, linked them with microfinance and provided them with storage technology. This direct relationship has enabled us to build reliable sources of raw material. We have also partnered with IFDC, an international organization through the 2Scale Project to enhance our supply chain.  

What is the methodology with your stakeholders?

Very early in our history, we invested in completing a value chain mapping to understand the regions in Nigeria that grow the produce that we required for our operations. Since then, we have invested in building relationships with farmer clusters identified through our links with the Agriculture Development Programmes at the State level or international agencies. We then sensitize and train them before placing a trial order. Based on the success of this order, and the cluster is able to meet our specifications, we place a bulk order.

What is your strategy at staying competitive?

We are committed to innovation and continuous improvement. We will continue to produce high quality products at affordable prices that can compete globally. To-date, we have invested in producing spices that excite Nigerian tastebuds, including pepper soup, barbeque spice for making spicy meat dishes including suya (a local kabab), jollof (a spicy rice dish), fried rice, chili pepper, Cameroon pepper, black pepper, ginger, garlic, and moring (a herb that is rich in antioxidants). We also have soya-maize that is fortified with vitamins and minerals, providing a complete meal and fights off malnutrition. We will be introducing turmeric and spicy peanut butter in the next few months.

What is the company’s annual production volume?

We have grown consistently by 100% annually.

What is your R&D focus?

Our R&D focus is basically on nutritional improvement of every Nigerian. We will be introducing new products and pack sizes in the coming months.

Is there special storage needed for your products – for processing and transportation to the market?

Our portfolio only encompasses ambient products, so not really specialized storage is needed. They are packaged in plastic bags, sacks and boxes and each has a fairly long shelf life.

With the interest your products have generated locally, do you have plans to enter new markets?

Our products are already available in six Nigerian states. However, we are now interested in expanding our reach across the country and also create markets in the US and Europe.

A ‘Proudly West African’ run by West Africans for the benefit of West Africans, AACE Foods is determined to produce products that are of the highest quality standards that are attractive, tasty and nutritious, while keeping operational costs low, reducing waste and promoting innovation and advancement for all its stakeholders. Considering the leaps and bounds the company has achieved in such a short time, there is no doubt it shall achieve all this, and much, much more for Nigeria.