The company is targeting to reach bottom of the line consumers, who will be the first to enjoy the affordable Kabambe milk.
Speaking during the Launch of Kabambe milk in Kibera, New KCC’s Managing Director Kipkirui arap Langat stated that Kabambe was introduced to provide safe, nutritious and affordable milk to the low end markets.
Currently 40 percent of the Kenyan consumers can be classified as low end consumers especially in slum areas around the country.
“The launch of Kabambe is a clear milestone for New KCC being innovation driven. It’s important to note that KCC is the first dairy in Eastern Africa to avail affordable, hygienically packaged milk to the low end market segment through the launch of Kabambe.”
A study conducted in the country by Tetra Pak, indicated that the main challenge facing the dairy industry is making processed milk products affordable, available and attractive to low-income consumers.
“Current estimates show that processed and packaged milk stands at 20pc of all milk produced in the country is marketed, while still small in absolute terms, the formal diary industry is now the fastest growing agricultural sub-sector in Kenya. It’s important that milk processors ensure that consumers have access to quality affordable milk at all times,” said Langat.
At the same event, Tetra Pak MD Marcelo Quieroz stated that Kenya’s dairy industry has witnessed an increase in production and consumption of milk of around two percent from last year amounting to 4.2 billion litres. White milk sales, the biggest category by volume, are expected to post a compound growth rate of 1.6 percent in 2011-2014 with consumption rising.
“We think that there is a big opportunity for dairy producers to increase processed milk consumption volumes in Kenya. We at Tetra Pak believe that there is an opportunity for developing new dairy products which are affordable to Kenyans.”
Under the flagship KCC brand, Kabambe will be rolled out nationally in targeted markets countrywide. Kabambe is also expected to sell well in institutions of higher learning where it will be targeted to students living in hostels and who prepare their own meals and need milk in small quantities for single uses.