Softa’s entry into the juice market will renew its rivalry with Coca-Cola, which has invested billions of shillings in this segment of the market that is also dominated by Del Monte and Kevian — makers of ‘Pick and Peel’ and Afia juice.
Softa’s product range include water and soda—which despite doing well in the lower segment of the market in the 1990s, failed to shake the dominance of Coca-Cola.
Kenya’s growing middle class is increasingly concerned about health, a worry that is pushing beverage companies to juices.
Thika-based Del Monte last year announced a Sh1.7 billion investment plan to boost its juice plant, months after Coca-Cola started a multi-billion- shilling expansion plan through the upgrade of its Beverage Services Kenya subsidiary, hoping to capture the health-conscious juice consumers in East Africa.
Beverage maker Softa Bottling Company will from next month start processing fruit juices in what is expected to up competition in the ready-to-drink segment.
The company, owned by businessman Peter Kuguru, has begun the search for wholesalers and distributors for its juice product dubbed Asili—which will be produced in partnership with Makuyu Factory.
Under the pact, the factory located near Kakuzi on the Nairobi-Nyeri highway, will receive the fruit from farmers, crush it and then deliver the product to Softa’s Nairobi plant for processing and packaging.
Softa’s entry into the juice market will renew its rivalry with Coca-Cola, which has invested billions of shillings in this segment of the market that is also dominated by Del Monte and Kevian — makers of ‘Pick and Peel’ and Afia juice.
“We are looking to form a wide network of distributors in basically all counties across the country,” said Jackson Matheka, Softa’s marketing manager.
“Our diversification into the fresh juice segment is in response to changing market trends where many consumers are demanding fresh juice products,” added Mr Matheka.
Softa’s product range include water and soda—which despite doing well in the lower segment of the market in the 1990s, failed to shake the dominance of Coca-Cola.
Kenya’s growing middle class is increasingly concerned about health, a worry that is pushing beverage companies to juices.
Thika-based Del Monte last year announced a Sh1.7 billion investment plan to boost its juice plant, months after Coca-Cola started a multi-billion- shilling expansion plan through the upgrade of its Beverage Services Kenya subsidiary, hoping to capture the health-conscious juice consumers in East Africa.
The increased activity in Kenya’s juice market has not only resulted in a vicious war at retail outlets of the ready-to-drink juice market segment but has offered fruit farmers a steady market for their produce.
For instance, Del Monte has signed an 18-year land lease for 1,000 hectares in Matungulu District to grow pineapples to boost supply of raw materials.
Coca-Cola has also contracted farmers in the Rift Valley, eastern and central regions to supply its juice processing plant with fruits, especially mangoes and passions, for its Minute Maid brand.
Softa is also employing the same model to attack the eastern Africa market by contracting mango fruit farmers in zones like Murang’a, Ukambani and the coastal region.
The corporate interest in manufacture of juice may also reduce wastage due to haphazard marketing and cut out middlemen who exploit farmers thus guaranteeing higher returns.
Kenya’s growing middle-class provides a ready market for juice as it increasingly seeks alternative to carbonated soft drinks, in which Coca-Cola enjoys a near monopoly.
A recent report by Euromonitor International, a marketing research firm, noted that the Kenya’s juice market is outpacing that of carbonated soft drinks market—which has been growing by single digit in recent years.
