New KCC takes on rivals with Sh14 long-life packet of milk

New KCC Thursday launched a Sh14 packet of milk as the State-owned firm seeks to grow its market share in the competitive dairy business.

The 100ml ‘Long Life’ milk packet targets the low-end market as well as urban consumers seeking milk products on the go.

It is also eyeing remote and hard to- reach markets given the product comes with Tetra Pak’s packaging, which can be stored at room temperature for days, eliminating the need for refrigeration.

“The launch of our new product is aimed at making milk affordable to low-income earners and discourage consumers from using hawked milk,” said Matu Wamae, New KCC chairman.

“Our main target in Nairobi is Kibera, Korogocho and Mathare. We want to ensure that residents of these areas get to enjoy this new brand at a pocket friendly price,” added Mr Wamae while launching the product in Kibera in Nairobi.

The company is now focusing on the ‘kadogo economy’ — the 100ml packet of milk being smallest in the Kenyan market — to cut the dominance of Brookside, which has lately been on an acquisition spree. The least price of processed milk currently is Sh40.

Mr Wamae said that the product is also aimed at the growing middle class and children who enjoy drinking milk while travelling, doing business chores or at school.

New KCC is racing to fend off competition from new players such as Githunguri Dairy Farmers Co-operative, maker of Fresha brand and Sameer (Daima Milk) that have eaten into its market share.

New KCC has a processing capacity of 700,000 litres of milk daily and commands 20.8 per cent of processed milk market behind Brookside’s 44 per cent.