Haco turns to baby foods niche to boost revenues

The firm’s entry into the food market comes as an influx of home and personal care products from India and Asia eat into the market share of established players such as Haco and Reckitt Benckiser.

Reckitt Benckiser, which manufactures household cleaning agents such as Dettol, Jik and Harpic, closed shop last year and ceded production of its flagship brands to a local manufacturer — Orbit Chemical Industries Limited — citing difficult market conditions.

Haco’s cosmetics business is also being ravaged by counterfeits at a time when demand continues to be burdened by high inflation.

This has been worsened by the surging cost of raw materials, which has raised production bills by 30 per cent, coupled with a drop in sales volumes.

For instance, the firm’s flagship Bic pens have lost market share with volumes shrinking 25 per cent as fakes continue to eat into its share.

The firm shed 100 jobs from its 650 work-force in January in an effort to defend its earnings in an economy that is delivering lower sales amid rising costs.

Haco Industries is hitting back and betting on the Tiger deal to meet its target of doubling its revenues every three years.

Mr Igathe said he was not worried about the poor performance of South African products in Kenya.

Pens and razors

The firm distributes and manufactures products under licence from America’s ET Browne, Alberto Culver, France Societe BIC, and Britain’s Jeyes Plc.

Among its product range are Bic ball pens and razors, household care products such as Sosoft, Jeyes Bloo, Ace Bleach and Eazie ; as well as cosmetics such as Palmers, TCB and Motions.

Mr Igathe said Haco would also enter into other areas of baby products soon.