Brookside bets on deal with hotels to grow sales
A milk processing plant belonging to Brookside Dairy Ltd near Nairobi.
Milk processor Brookside Dairy has entered a deal with hoteliers for the uptake of its products as part of a strategy to grow its market in the hospitality sector that forms a niche market for dairy produce.
The giant processor said yesterday it would strengthen its business partnerships with the Kenya Association of Hotelkeepers and Caterers (KAHC), as it moves to consolidate its market lead in the hotels, restaurants, and cafes market.
Speaking at the 19th symposium of the KAHC in Mombasa, Joseph Muguongo, Brookside’s General Manager for Sales said the processor was keen to expand its territorial lead in the hospitality industry, with its new product innovations.
“Five years ago, we unveiled our business partnership with the Kenya Association of Hotelkeepers and Caterers, and since then, Brookside Dairy has witnessed immense benefits from the interaction with the lobby and its membership,” he said.
“We are leveraging this goodwill as an opportunity to further grow our market share with products that answer to the demands of our consumers who patronize hospitality facilities across the country,” he added.
The KAHC’s membership mainly comprises star-rated hotels, restaurants, caterers, lodges, tented camps, and residential cottages—which are big consumers of niche dairy products including yoghurt, butter, ghee, cheese, and low-fat milk.
The deal with the lobby would give Brookside access to sales opportunities amid competition from rival producers in the mass market.
Brookside, which has a daily installed milk processing capacity of 1.5 million litres, has the largest raw milk supply footprint in the country and seeks to further expand its market share.
Data by the Kenya Dairy Board (KDB) shows that milk production in the country is estimated at 5.2 billion litres per year with an estimated 1.8 million smallholder dairy farmers, who produce over 80 per cent of the milk.
Milk uptake in the formal sector dropped from 52.21 million litres in February 2023 to 52.19 million litres in March 2023, KDB said.
