Tuesday 6 December 2011

CARBONATED SOFT DRINKS VERSUS FRESH FRUIT JUICE

Kenya's soft drink market is worth approximately 1 billion dollars. A great portion of the market is dominated by carbonated soft drinks and synthetic juices. Fresh juices are now receiving positive publicity and there is growing demand for them. They are being touted as blood purifiers, antioxidants besides containing the necessary vitamins and nutrients.

On the other hand, carbonated drinks are being regarded as slow poisons and are being linked to conspiracy theories of a few illuminati who want to destroy the world through slow poisoning.

Unfortunately, small farmers are reaping less than 5% of this money in form of sales of fruits to middlemen, exporters and local juice makers. The farming of fruits in Kenya is disorganized especially among the small farmers thus the poor proceeds.

This is soon to change, thus signaling the end of dark days for clip_image001[1]farmers and usher a bright future.

This indicated by the entrance of many market players who are competing for produce from few farmers and increased demand even from consumers who make homemade juices.

MAKING FRUIT JUICES AT HOME

Making juices at home is nowadays simple because of the availability of affordable blenders in the market imported from China. They make it possible to produce high quality fresh fruit juice from the comfort of peoples home.

All one needs to do is to peel the fruits, cut them into small pieces then put them in a blender or juice extractor. A little water is added to reduce the thickness of fruit paste.

Once the blender is turned on and runs for about 2 minutes, the juice is ready for drinking. In this way; you will save money, gotten; nutrients, vitamins and fiber that are devoid in carbonated drinks and made sweet juice free of added artificial sugars.

MARKET PLAYERS IN THE SOFT DRINKS MARKET

Currently the Kenyan market is dominated by soft drink manufacturers like Coca cola, Pepsi, and Softa, who produce carbonated drinks. These drinks have raised health concerns in Europe, USA and other parts of the world.

They are suspected to be responsible for fuelling the increased numbers of people suffering from lifestyle diseases like hypertension, diabetes, gout and cancers resulting to a shift of focus to fresh juices.

ROLE OF THE MIDDLE CLASS IN THE FRESH FRUIT JUICE CONSUMPTION

The shift to fruit juices in Kenya has been caused by the changing preferences fueled by the rapidly budding middle class. This group is demanding and ready to pay for fresh juices; at are more expensive compared to carbonated soft drinks.

On the other hand they are avoiding carbonated drinks which are associated with lifestyle diseases. Though the shift has not substantially reduced the consumption of carbonated drinks, manufactures processors are developing strategies serve health conscious customers. 

The result of increased health awareness is the entrance of new players in the market; like Daima, Pick and Peel and Afia Juices whose niche is the consumer with health concerns.

These new entrants have been able to grab a significant market share that was formerly dominated by carbonated drinks and customers are choosing their products over carbonated and synthetic juices. 

EFFECT OF GROWING DEMAND OF FRESH JUICES

Multinationals like Coca-Cola have been forced to invest in the fresh juice production, which they previously ignored partly because of the logistics involved, and previous low demand of the product due to the cost.

Furthermore they have realized that the growing demand is sufficient for them to recoup their investments. This is good news farmers, since this has created a market of their fruits that in the past used to rot in their farms.

Years ago farmers were not able to find market during peak production for their fresh fruits like mangoes, passion fruit, guavas, apples but the current demand of such has created a shortage of fruits. The effect of this is the growth of income thus they are no investing in activities like irrigation to boost year round production.

CASE STUDY OF FRUIT FARMING IN KIAMBU DISTRICT

Farmers in Kiambu grew these crops in the past with the export market in focus. This was attributed to the returns realized from the local market. The stringent requirements of the export market made it uneconomical and difficult for the farmers to comply leading to a shift to the local market whose prices had improved dramatically.

Mr Mbogo a farmer in Githunguri in Kiambu says, “3 years ago, the size of my farm that was under passion fruit was 3 acres with the rest 5 acres dedicated to coffee.”

“I realized that the demand for passion fruit was so high, so I put all my land under passion fruit.

My strategy is to target hotels within Nairobi city where I sell 1 kilo of passion fruit at 250 Shillings.” says Mbogo. “I can now afford to pay fees for my three daughters in university” He adds.

Increased awareness of consumers on the health benefits of fresh fruit juice is surely going to change the fortunes of farmers. Multinationals like Coca Cola are now entering into contract farming farmers in Central Kenya.

Last year, the soft drinks maker entered into a deal with the Gates foundation to work with 54,000 small scale farmers in Kenya and Uganda for mango and passion juice production under a company known as Beverage Services Kenya. This company was latter, rebranded to Coca Cola juices Kenya.

Another case that is an indicator of changing market tastes is the multibillion investments currently being undertaken by companies like Del Monte Juices, Sameer Agriculture and Daima juices. Farmers should therefore position themselves to reap from these developments.

AVAILABILITY OF FRESH FRUITS IN KENYA

Passion fruits, strawberries, pineapples, pawpaw, lime, banana, tamarillo, African horned melon are available throughout the year, while mangoes, avocados and macadamia are seasonal. The chat below shows the times and availability of some fruits in Kenya

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