Bidco's juice start-up eyes regional market

Bidcoro Chief Operations Manager David Anthony Alford (Photo / David Gichuru

A joint venture between local edible oils manufacturer Bidco and Danish juice maker Coro is targeting to grow its footprint in the region.

Bidcoro, formed after the partnership between Bidco and Coro, hopes to take on fruit processing giants across East and Central African with its range of low-cost fruit juices.

The firm says it might set up a second production facility in Southern or Central Africa to handle demand from the region.

The company currently produces the juice from its new Sh1 billion factory in Ruiru, with products currently distributed in Kenya and Uganda. Bidcoro Chief Operations Manager Dave Alford said there are plans to distribute the juices in other countries across the region.

“This year, we will establish sales and distribution partners in Tanzania, Madagascar and Zambia. We are already in Rwanda and Burundi through the links with the Ugandan distribution partner,” he said.

“The ambition is to be in as many East African markets as possible within the first five years of the business.

“We are talking about 16 markets in total in the region, go as far west as Eastern DR Congo and Mozambique in the south.”

He explained that he factory had capacity to service demand for the next ten years, but is open to setting another plant, possibly in Mozambique. This is if the demand outstrips the Ruiru factory or economics of shipping to targeting southern and central African markets require the firm to do so.

“The first factory is in Kenya and it makes sense to use it to expand product distribution in the neighbouring countries. After that, we can look further afield,” said Alford.

Bidco started discussions with Coro four years ago but signed an agreement to set up the joint venture two years ago.

The construction of the production facility started 18 months ago at the Bidco industrial park. The plant started production in November last year.

According to Alford, the decision by Coro to partner with Bidco was out of years of experience that the edible oil firm has in the Kenyan market. Bidco had been looking to diversify into the soft drinks market.

Low-priced

The firm is eyeing a bigger slice of the regional market with its low-priced products that are also packaged in small quantities.

Alford said the 125 millilitre pack that retails at Sh20 will revolunise the market. Using low margins but high volumes strategy, the firm hopes to have the Suntop brand in every “duka and supermarket in two years.’

Related Topics

Bidco