Coca-Cola to incorporate farmers into supply chain

By John Njiraini

Coca-Cola has launched a plan to consolidate fruits supply in its East Africa operation by incorporating farmers to its supply chain.

The Sh900 million project will help selected mango and passion fruit farmers increase productivity, and ensure beverage manufacturer has sustainable supply of the raw materials.

The project, which is being implemented in partnership with the Bill & Melinda Gates Foundation and TechnoServe, will see some 50,000 small-scale farmers in Kenya and Uganda participate in Coca-Cola’s supply chain for the first time.

The firm anticipates 100,000 metric tons of mango and passion fruits will be produced annually during the four years of implementation.

It is understood that TechnoServe will do the work on the ground, training farmers to improve the quality of their fruit and helping them organise into groups and access credit. This will help farmers double their incomes, as well as help Coca-Cola grow its juice market in the region.

"We view this partnership as an innovative approach to business and sustainability; One that will grow both our business, and drive economic empowerment in Kenya and the region," said Coca-Cola’s General Manager for Still Beverages in East & Central Africa, Lionel Marumahoko.

Statistics from Coca-Cola indicate the total market value of fresh fruit and fruit products in Sub-Saharan Africa is worth $11.5 billion, and the consumption of processed fruit is expected to increase at an average of six per cent annually.

Biggest buyer

Coca-Cola, which is the world’s biggest buyer of fruits for juice manufacturing, has more than 1,100 juice products across the globe.

Marumahoko said the Government’s decision to reduce excise tax on soft drinks — from 10 to seven per cent — and water — from 10 to five per cent — gave the company the impetus to broaden its investments.