Capwell enters beverage market with Sh250m plant
Capwell Industries, the manufacturer of Soko maize flour, has ventured into beverage production with the launch yesterday of a cereal milk drink that will be processed in a new installed Sh250 million plant in Nairobi.
Prior to the launch, the Thika-based 20-year-old company specialised in various processed milled cereal products made from maize, rice, wheat and pulses.
Capwell’s move comes only a month after Coca-Cola Kenya launched a new range of beverages in its bid to become a total beverage company signaling imminent increased competition in the soft drinks market segment.
Capwell chief executive Rajan Shah said the new product was in line with the firm’s strategic direction to venture into beverages and expand its product range.
“Following the Sh250 million investment, Capwell Industries has now become a fully-fledged food and beverage company with the introduction of Yola, our first foray into the cereal milk drink and thus beverage category,” said Shah.
“This is a strategic growth move that we have taken to expand the line of products we offer in response to an evolving Kenyan food culture,” he added.
According to Shah, most of Capwell’s growth comes from urban and peri-urban areas, a market segment whose population and income has continued to rise resulting in choosier consumers.