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Ovaltine’s new production facility in Lagos, Nigeria, became fully operational in April 2026. It is the business’s first owned manufacturing facility in West Africa and a key enabler to achieving Ovaltine’s growth ambitions in the region.
By investing in domestic infrastructure, Ovaltine is now able to service its customers more cost-effectively and four times quicker than before. As well as investing in a state-of-the-art vacuum band dryer, one of only three brands in Nigeria to have this capability, it has also invested in its people; Ovaltine now has 110 full-time employees in the country to support its operations, including a larger sales team to help drive its routes to market with its distribution partners.
The facility can deliver end-to-end powder production, from raw materials through to finished goods. This is complemented by an automated delivery system to support its four packing lines. It manufactures three different formats, available in seven sizes from single serve 18g and 30g sachets, through to multi-serve pouches and tins from 350g up to 1.2kg.
These investments mean Ovaltine, the fifth largest brand in Nigeria, is wellplaced to grow its current 6% market share of the country’s chocolate beverage market. The category has 95% household penetration in Nigeria, making these products a consumer staple for Nigeria’s 220 million population, which is growing 2% year-on-year.
Capacity expansion has therefore been built into the facility’s plans, with the ability to increase production up to 500% to meet potential demand. It was important to incorporate this expansion capability into the construction phase, as not only does Ovaltine’s Lagos factory service the domestic market but it also exports finished goods to eight West African countries: Cameroon, Ghana, Guinea, Ivory Coast, Liberia, Senegal, Sierra Leone and Zambia. This export business represents 17% of the business today, with huge potential for growth.
With a good understanding of consumer needs and a winning product, serviced by this new facility and better routes to market through strategic distributor partnerships and consumer activation, Ovaltine is strongly positioned to significantly grow its West Africa market share in the coming years.
potential production increase at the facility
Revenue (£m)
population of Nigeria, growing 2% year-on-year
Revenue (£m)
Above: The vacuum band dryer used to dry powder at Ovaltine's new manufacturing facility in Lagos, Nigeria Top right: Ovaltine packaging used in the Nigerian market