TradeDepot, a leading B2B e-commerce platform, is moving upstream into food production with the launch of its new brand, Mangrove. The company, which has traditionally focused on distributing FMCG products to retailers, is now entering the manufacturing sector, offering affordable food staples such as sardines, rice, flour, peas, and canned fish.
This strategic expansion aims to address rising inflation (34.8%) and the naira devaluation, making essential food items more affordable for Nigerian consumers.
A Cost-Saving Alternative for Consumers
TradeDepot’s move into manufacturing will allow it to bypass the “brand tax”, enabling it to sell high-quality, lower-cost alternatives to well-known brands.
Example of cost savings:
✔ Mangrove Sardine: ₦1,050
✔ Titus Sardine (popular brand): ₦1,450
Savings per purchase: ₦400
For middle-income consumers, this pricing strategy could make a significant difference in household spending.
TradeDepot’s Competitive Advantage
✅ Strong Distribution Network – TradeDepot already has an extensive retail distribution system across Nigeria.
✅ Data-Driven Strategy – The company understands purchasing patterns and can efficiently distribute new products.
✅ Exclusive Brand Partnerships – The company holds exclusive distribution rights for brands like Unilever and Prime Hydration (Logan Paul & KSI’s brand).
Challenges in the Transition to Manufacturing
While the move offers growth opportunities, it also brings new risks:
Supply Chain Complexity – Managing imports and production schedules adds new costs and logistical challenges.
Increased Financial Pressure – Unlike pure distribution, manufacturing requires higher capital investments and tighter margins.
Competition with Wholesalers – TradeDepot now competes with existing food brands and local market distributors.
Industry Shift: TradeDepot vs. OmniRetail
While TradeDepot expands into manufacturing, other B2B startups like OmniRetail are diversifying into fintech. OmniRetail’s recent acquisition of Traction Apps shows a push towards digital payments and financial services.
TradeDepot’s strategy: Manufacturing & exclusive distribution
OmniRetail’s strategy: Fintech expansion & payment solutions
Both approaches aim to increase margins and strengthen market positioning, but TradeDepot is betting on controlling the supply chain to drive long-term growth.
A Potential Industry Game-Changer
TradeDepot’s move into food production could:
✔ Reduce consumer costs & increase affordability
✔ Enhance supply chain efficiency for FMCG brands
✔ Make TradeDepot an attractive acquisition target for larger players
If successful, Mangrove could establish TradeDepot as a dominant force in both distribution and manufacturing, reshaping Nigeria’s food retail landscape.