Twiga Foods expands own product lines with lower price offers

Workers sorting bananas and arranging them into creates at Twiga Foods Limited in Syokimau in Nairobi on May 30, 2019. PHOTO | EVANS HABIL | NMG

What you need to know:

  • The start-up, which currently supplies fruits, cooking oil and snacks through a mobile-based platform, already sells its own products that consist of rice, cooking oil and maize flour.
  • A Twiga bale of two-kilogramme grade one sifted maize meal packets retails at Sh1,299 while its fortified vegetable cooking oil sells for Sh4,199 per 20 litres.
  • Twiga is betting on lower pricing to attract end consumers as well as small shops that rely on small margins.

Agri-tech company Twiga Foods will launch more of its own branded products such as sugar, salt and snacks in an expansion strategy aimed at attracting customers with relatively lower prices.

The start-up, which currently supplies fruits, cooking oil and snacks through a mobile-based platform, already sells its own products that consist of rice, cooking oil and maize flour.

“Excited to continue the roll-out of our private label line, giving our customers choice of high quality at a low price,” Twiga Foods chief executive and co-founder Peter Njonjo said on his LinkedIn profile.

“Maize flour joins our growing stable that includes cooking oil and rice. Looking to more from the pipeline in the coming weeks.”

A Twiga bale of two-kilogramme grade one sifted maize meal packets retails at Sh1,299 while its fortified vegetable cooking oil sells for Sh4,199 per 20 litres.

The above prices are lower than in leading supermarket stores.

At Naivas, for example, a bale of maize flour costs Sh1,488 (Jogoo), Sh1,476 (Soko) and Sh1,788 (Amaize). Similarly, 20 litres of cooking oil goes for Sh5,053 (Ufuta) and Sh4,921 (Salit).

Twiga is betting on lower pricing to attract end consumers as well as small shops that rely on small margins.

The company last year diversified into rice distribution under the Soko Yetu rice brand with a 25-kg pack retailing at Sh1,970.

Product diversification comes after the company in November 2021 raised Sh5.56 billion from international investors such as Creadev, OP Finnfund Global and Endeavor Catalyst Fund, among others, for East and West African expansion.

Twiga is among a growing number of tech-enabled firms that are seeking to disrupt food and other consumer supply chains, connecting producers to consumers and reducing the number of middlemen in the process. Twiga serves thousands of farmers and vendors.

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