New KCC takes on rivals with Sh15 packet of milk

The launch of the 100ml fresh milk is also seeks to fend off competition from new players. FILE 

By DAVID HERBLING

In Summary

• The long life milk is targeted at the low-end market as well as urban consumers seeking to milk products on the go.

New KCC has launched a Sh15 packet of milk as the State-owned firm seeks to grow its market share in the competitive dairy business.

The long life milk is targeted at the low-end market as well as urban consumers seeking to 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.

“We introduced the 100ml package so that the low income earners can also benefit from our products by having access to it,” said Matu Wamae, New KCC chairman.

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.

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.

The launch of the 100ml fresh milk is also seeks 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 New KCC’s market.

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

Brookside recently acquired Molo Milk and Limuru Milk. Fresha controls 17 per cent of milk market.

READ: Brookside takes over Limuru Dairy