Value addition is an important process in many agricultural value chains, especially for perishable products like milk. It is a key step to preserving and enhancing quality, increasing revenue as well as creating job opportunities, especially for the youth. Milk value addition is not only a means to extend shelf life but is also key to building a sustainable dairy value chain. In Kenya, the Kieni Dairy Products Limited (KDPL)-2SCALE partnership aims to improve the competitiveness of KDPL by making it more sustainable and inclusive as an aggregator and processor.
Since its inception, KDPL aggregates milk from farmers and mostly sells it as unpackaged chilled milk to large off-takers. However, this has not been fetching them enough revenues to be able to pay farmers competitively and expand operations. Hence, building a strong brand and developing value-added dairy products remains a key strategy for the dairy company. Thanks to the partnership between 2SCALE and KDPL, the dairy has now introduced its own branded yoghurt called Highridge to the Kenyan market as it aims to build it into a strong, reputable brand. They have also begun processing sour milk, which is locally known as -maziwa mala-a drink enjoyed by most Kenyans.
Challenges with yoghurt formulation-unforeseen losses
Initially, KDPL had launched yoghurt and had started distributing it to retailers within Kieni region, Central Kenya. However, the lack of expertise in yoghurt formulation led to unforeseen losses. In addition, the chosen brand name had been patented by a different company and they thus had to re-brand.
Mr Isaac Mwaniki, CEO of KDPL narrates:
In early 2019, we launched plain and flavoured yoghurt in the market. The reception from retailers and consumers was great since KDPL is a dairy company most people in the Kieni region identify with. However, this was short-lived as supply networks were cut short since the packaged yoghurt would swell and go bad even before the expiry date. After recalling all the yoghurt distributed, we discovered that microbial contaminants caused the swelling, and this was partly attributed to poor handling in formulation process. We also discovered that the area we had designated for yoghurt formulation was not suitable since it encouraged cross-contamination. There was also a challenge in the brand name since the name we had chosen had already been copyrighted by another company in Kenya.
Such unforeseen circumstances caused huge losses for the company due to the recalled products as well as halting the entire production process. However, it gave the cooperative a positive challenge to look for ways to perfect product formulation, and build a stronger, trusted brand.
Creating a strong product, and brand: 2SCALE’s intervention
In 2021, KDPL, with the support of 2SCALE officially registered and launched a new brand identity titled Highridge. It also re-launched the yoghurt production line bearing the brand name Highridge.
The first step to achieving this was to investigate the problems that led to the initial product failure. 2SCALE supported KDPL to set up a carefully controlled environment to serve as a yoghurt processing plant. This was done to reduce exposure of the yoghurt to any bacteria from raw milk. Mr Ben Weijers, a milk processing consultant, was engaged to train staff on yoghurt production and give recommendations and professional techniques required to produce quality and nutritious yoghurt.
In addition to this, a food scientist-25-year-old Ian Mwangi-was hired to take charge of the yoghurt formulation and packaging.
Ian has successfully led the process which resulted in the relaunch of quality yoghurt in the market. He narrates,
I am very passionate about food science and food technology. When I joined KDPL, my priority was to have a product that is safe and nutritious for consumers. First, we designated a safe environment where we could culture yoghurt. Consequently, we now have a stand-alone building where we prepare the yoghurt. This was my first formal employment opportunity as I had never worked in a yoghurt processing plant before. However, the management at KDPL took me to various factories where they process yoghurt for commercial purposes, so I could master the skill. This experience made me learn the finer details one must consider, to develop quality yoghurt. I am happy that I can put theory into practice, and my first job entailed solving a problem and formulating a product that has a shelf life of over 30 days.
Currently, KDPL produces plain, vanilla, and strawberry flavoured yoghurt packed in 500ml, 250 ml and 150 ml. The range of packaging sizes was selected to accommodate diverse kinds of consumers, including those at the Base of the Pyramid (BoP).
As the product formulation and testing were ongoing, the 2SCALE BoP marketing team supported the fine-tuning of the branding aspects. This entailed consultatively designing and patenting a brand name for the dairy products, designing the branding for yoghurt cups as well as ensuring sales points were rebranded with the new brand identity.
George Njeru, 2SCALE BoP marketing specialist narrates:
In 2021 KDPL sought to expand its market by adding packaged yoghurt to its product portfolio. This was not going to be an easy journey, but the CEO, with the blessing of the board, was determined to go all the way in commercializing the yoghurt. Names were floated and finally, the brand name “Highridge” with the tag “deliciously healthy” was board-approved and registered. New brand elements were developed, including identity colours, merchandise, product logo, signatures et al. Then, two KDPL retail outlets were rebranded with the new “Highridge” logo and colours. KDPL in partnership with 2SCALE designed and rolled out a go-to-market strategy for the Highridge yoghurt product, starting with the Kieni sales area. The Highridge yoghurt is expected to hit the market aggressively, and hopefully, provide KDPL incremental sales revenues since it is a highly valued product. 2SCALE looks forward to reaching part of the targeted 50,000 BoP consumers with the deliciously healthy Highridge yoghurt.