Cooking oil firms in tough battle for market share

By FRANKLINE  SUNDAY

Bidco and Kapa oil companies are locked in a tight battle for market share for the country’s lucrative consumer market in a move likely to bring the costs of popular products down for consumers.

Data from research firm Consumer Insight indicates that the Vimal Shah, family-owned Bidco Oil Refineries currently dominates the cooking fat and oil market.

According to the survey, products from Bidco’s stable control about 47 per cent of the edible oil segment with products like Golden Fry, Bahari and Elianto placing strongly in terms of brand visibility.

Bidco Oil Company headed by Vimal Shah, recently ranked as the richest man in East Africa, rose from a cotton processing cottage industry into the largest edible oils manufacturer in the region shipping diverse products to 16 countries.  

“Bidco’s dominance in cooking oil has risen over time and seems secure for now, “ said Consumer Insight.

Top in cooking oils category is, however, new entrant Fresh Fri, a product of Pwani Oil refineries. According to the survey, 29 per cent of consumers prefer Fresh Fri for their cooking needs with 22 per cent picking on Golden Fry.

Intense competition

The new findings mirror the intense competition in this consumer market segment. The three oil firms are executing aggressive marketing campaigns with millions of shillings of ad-spend to lure consumers.

The entry of Pwani Oil refineries into the ring with its flagship Fresh Fri brand has only sparked more competition in the market. 

“Newcomer Fresh Fri has made a strong entry although it may be sometime before it achieves a similar position as Bidco Oil Company,” states Consumer Insight.

The same scenario plays out in the cooking fat segment where Kapa Oil dominates the market with its flagship brand Kasuku that has been enjoying intense advertisement.

“Kasuku enjoys a marginal 30 per cent lead over its close rival Kimbo which has a 25 per cent hold on the market,” Consumer Insight adds.

The survey further states that Kapa Oil’s aggressive marketing of Kasuku might widen the gap over rival Kimbo.

According to Mr Robert Gachagua, a marketing executive with a local advertising firm, the ongoing competition for market share in the localcooking oil industry is bound to get more heated with consumers emerging the winners.