Sasini Moves To Halt Profit Slide With Branded Coffee

A listed agricultural firm yesterday launched branded tea and coffee products.

Sasini Tea and Coffee profits have suffered due to a strong shilling and the move is a way by the company to cushion itself against further losses.

The three different tea blends unveiled yesterday are Chai, Premium and Gold, while the six coffee varieties are Aberdare, Continental, Espresso, Gulmarg, AA Tajiri instant coffee.

They weigh between five and 500 kilogrammes and are for both the local and export markets. Some will be packaged in sachets and tins with the smallest retailing at Sh10 per five kilogramme per five kilogramme sachet.

Officials said the pricing of the products match those of competitors. "Our entry into the consumer market is part of our strategy to diversify from commodity operations to include value addition options in blending, packing and branding for the two markets, said managing director Peter Muthoka.

The firm will complete a Sh50 million coffee mill in the next three months to roast, pack and export coffee. It will help cut down production and processing costs, said Mr Muthoka.

The firm's products are targeted for markets in parts of Europe and the Middle East. But to realise this, the firm's officials yesterday called on the Government to start complete reforms in the sub sector.

Group chairman, Naushad Merali, criticised what he termed piecemeal reforms for the industry, and said that farmers should be allowed to sell their coffee directly to buyers, a system referred to as a 'second window'. Parliament had passed new laws, but the line ministries were taking too long to implement them, Mr Merali said at the launch. Laws must be spelt out to players to enable them fast track plans for growth for the sub sector.

"It is in our plan that we produce, mill, roast, pack and export coffee, and as soon as the Government fully liberalises the sector, we should provide coffee marketing services, "he told the meeting at Nairobi Hotel.

He welcomed last month's launch of the Coffee Development Fund but there obstacles which impeded total liberalisation for the sector .

Some Sh100 million was spent in the new programme meant to enhance the firm's profit base. Apart from branding for the tea and coffee products, similar initiatives are planned for the dairy, horticulture sections.