TradeDepot, a B2B e-commerce platform known for linking FMCG manufacturers with retailers, has launched its own food brand, Mangrove.
This initiative is aimed at addressing the economic challenges faced by Nigerian consumers, particularly as inflation keeps rising, added to the depreciation of the naira.
The new brand promises to provide affordable, essential food items such as sardines, rice, flour, and canned fish, all carefully sourced to offer high quality at lower prices.
While Mangrove is not yet officially launched, it has already garnered attention from distributors through its website. In cutting out the middleman, TradeDepot hopes to offer consumers an alternative to the “brand tax”—the premium often associated with well-established food labels. With rising food costs, this move is timely, as it seeks to deliver savings directly to the consumer.
“We used to simply distribute for brands,” says Onyekachi Izukanne, CEO of TradeDepot. “Now, we’re integrating backwards into the supply chain by producing our products and bringing them directly to the market.”
Mangrove’s pricing model is a huge contrast to popular brands in the market. For example, its sardines are priced at ₦1,050, way cheaper than the widely recognised Titus sardine, which retails for ₦1,450. This price reduction could make a big difference for low-to-middle-income families, providing them with a chance to buy more food or save for future needs.
This move into manufacturing places TradeDepot in a strong position within Nigeria’s food sector, especially as consumers face a 34.8% inflation rate.
TradeDepot is not stopping at shifting towards food production with Mangrove, but also expanding its role in the market by cutting out middlemen. This strategy, combined with its large retail network, could make the company a potential acquisition target for larger FMCG companies.
TradeDepot’s new path, however, brings added complexities. Unlike before, when the company focused on last-mile distribution, the shift to manufacturing and importing means that production delays or missed schedules could drive up costs.
Per TechCabal, a former FMCG executive, speaking anonymously, highlighted these issues: “When they were only concerned with last-mile distribution, they could source products locally. But now that they are manufacturing and importing, every extra day outside schedule incurs additional costs.”
Again, TradeDepot’s transition into manufacturing positions its competitors—other wholesalers and distributors—as prospective customers. Izukanne explains, “Our biggest competitor is the wholesaler in the market. They can cut corners in ways we can’t and have a different cost structure.”
TradeDepot’s deep knowledge of the FMCG sector and its large distribution network give it a competitive edge. The company leverages data to advise manufacturers on the best distribution strategies, helping to streamline logistics and ensure more efficient market entry.
Added to this, TradeDepot has secured exclusive distribution rights for well-known brands such as Unilever and Prime Hydration, a beverage brand co-owned by Logan Paul and KSI. These exclusive deals further reiterate its major role in the FMCG sector.
In response to its expanded operations, TradeDepot has adjusted its logistics model, now relying more on third-party providers to handle distribution. This change allows the company to focus on its core business of connecting manufacturers to retailers while scaling more efficiently.
TradeDepot’s adoption of manufacturing stands in contrast to other startups in the B2B e-commerce space, such as OmniRetail, which has diversified into fintech.
With the launch of Mangrove, added to its focus on manufacturing and exclusive distribution, TradeDepot is ensuring direct value to both its customers and partners, rather than venturing into unrelated sectors.
