New horizons for Novos Horizontes

It’s not easy to make a business out of poultry meat in Mozambique. Despite the serious and growing market demand, there is strong competition from imported meat, both close by (South-Africa) as well as far away (Europe). One of the local companies that has managed to compete in this tight market, is Novos Horizontes. Interestingly, Novos Horizontes is also a business that is strongly build on principles of inclusive business.

Novos Horizontes (based in Nampula, and one of the main business champions in 2SCALE’s activities in Mozambique) sources its meat from over 200 small scale poultry producers, that are provided by Novos Horizontes with feed, chicks, advise, and more, to increase the productivity of these small scale suppliers. Not only on the production side is Novos striving to be an inclusive business. Unlike many of their competitors, Novos strongly believes it is important that their meat remains affordable, available and accessible to low-income consumers in Mozambique.

Until recently, the company was supplying the market through 8 resellers and 40 retailers, mostly supermarkets.  However, through market research that was done together with 2SCALE, the company learned that much of their meat (branded as Novos Horizontes and as Frango King) that was for sale in the supermarkets, was bought by intermediaries that would subsequently supply re-sellers, kiosk owners and others further down the value chain.  Even though these intermediaries are very important for Novos’ supply chain, the company didn’t know that many of them were buying the product through supermarkets, making for an unnecessary  and expensive step in the value chain.

This insight lead the company to believe that, together with 2SCALE, it needed a revised marketing and distribution strategy to reach these more informal channels and market actors more directly, and use the consumer insights of these resellers to better tailor their products to low-income consumer needs.

One of the ways Novos did so, is through product diversification by offering smaller packaging of chicken pieces from 1Kg to 500 grams, and separately packing specific chicken parts, such as livers, hearts etc.  Another activity the company undertook was to engage the resellers more directly in their supply chain, by offering them training on product characteristics, marketing and consumer relations. Also, the shops of the resellers were painted and branded with Novos Horizontes logo’s to build further brand awareness.

Novos’ products are now better tailored to the needs of low-income consumers, that can better find the product, and buy it at a more affordable price, because the product is brought more directly to consumers. Also resellers are clear about what it has brought them. One of the first resellers involved, Pedro Tacanheque, indicates in only a few months his sales have increased with 50%, from 500 boxes of chicken meat to 1000 boxes a week, saying with a smile; “My business is doing well, I need to buy more freezers to stock more product”.

At Novos Horizontes, management is happy. The strategy to directly target resellers, increased sales to 3.5 million on average per month, creating room for the company to involve more small scale poultry producers in their outgrower schemes.

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