TradeDepot, a leading B2B e-commerce platform connecting FMCG manufacturers with retailers, is moving beyond distribution by launching its own food brand, Mangrove. This new venture will focus on producing and distributing affordable staple foods, including sardines, rice, flour, peas, and canned fish, to offer consumers cost-effective alternatives amid rising inflation and naira devaluation.
Although Mangrove is not officially launched, it is already attracting interest from distributors through its online platform. By sourcing high-quality products at lower costs, TradeDepot aims to eliminate the “brand tax”—the premium consumers pay for well-known brands—and pass those savings directly to buyers. “We used to simply distribute for brands. Now, we’re integrating backwards into the supply chain by producing our own products and bringing them directly to market,” says Onyekachi Izukanne, CEO of TradeDepot.
For instance, Mangrove’s sardines will be priced at ₦1,050, significantly lower than the well-known Titus sardines, which retail for ₦1,450. For low- to middle-income consumers, these savings could translate into higher purchasing power or better financial stability.
This shift into food production comes at a time when Nigeria’s inflation rate has surged to 34.8%, weakening consumer purchasing power. By offering affordable alternatives, TradeDepot is positioning itself as a key player in Nigeria’s food industry while enhancing its value proposition to both retailers and consumers.
According to a former executive in the sector, a successful transition into retail branding, coupled with its strong distribution network, could make TradeDepot an attractive acquisition target for major FMCG companies. The company follows a model similar to Amazon and Costco, which have leveraged private-label products to drive growth. “TradeDepot knows what sells, and they have the network to scale distribution,” the former FMCG executive noted.
Despite the potential benefits, venturing into manufacturing presents new operational challenges. Unlike its previous focus on last-mile distribution, where it could source goods locally, TradeDepot now faces logistical complexities associated with importing raw materials. Any delays in the supply chain could result in higher costs and tighter profit margins. “As a distributor, they had flexibility. But now, missed schedules or production delays mean higher expenses,” the FMCG executive added. However, TradeDepot’s strategic move enables the company to convert former competitors—such as wholesalers and independent distributors—into customers. “Our biggest competitor is the wholesaler in the market. They operate under different cost structures and can cut corners in ways we can’t,” Izukanne explains.
With extensive experience in the FMCG sector, TradeDepot is well-positioned to streamline market entry for brands by leveraging data-driven insights to optimize distribution. By offering manufacturers a cost-efficient way to scale in Africa, the company helps brands overcome logistical bottlenecks, market inefficiencies, and information imbalances.
In addition to launching Mangrove, TradeDepot has secured exclusive distribution rights for products from major brands such as Unilever and Prime Hydration—a beverage brand co-owned by Logan Paul and KSI. These agreements strengthen its role as a one-stop solution for FMCG brands looking to expand in Africa.
To support its expansion into manufacturing, TradeDepot has also revamped its logistics model. While previously managing its entire distribution network in-house, the company now relies more on third-party logistics providers, allowing for greater scalability and efficiency. TradeDepot’s decision to venture into food production contrasts with strategies adopted by other B2B e-commerce startups like OmniRetail, which has expanded into fintech. Recently, OmniRetail acquired Traction Apps, a fintech startup, to enhance gross margins and scale payment services.
In contrast, TradeDepot is doubling down on manufacturing and exclusive distribution, believing that this direct-to-market approach offers the greatest value to retailers and consumers alike.
As TradeDepot embarks on this new chapter, its ability to navigate the complexities of food production and maintain operational efficiency will be critical in determining its success in Nigeria’s evolving consumer market.
