Tanzanian instant coffee producer Tanica takes aggressive measures to expand market

TANZANIA – Tanzanian coffee producer, Tanganyika Instant Coffee Company Plc (Tanica), has re-strategized its operations to increase production, reduce expenses and expand market share.

Tanic produces pure spray dried Instant coffee of different blends, roasted and ground coffee and drinking water.

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The measures undertaken by the company to give it an edge include repacking its products, opening coffee bars and coffee shops in several towns and launching a new website.

It’s first coffee restaurant has been opened at La TRS Fitness and Club (formerly known as KIIZA Health Club) opposite the Victorious Perch Hotel, indicated Tanica in a press-release.

Marketing Manager Mr. Franco Maulid outlined the various benefits of opening the restaurants, including bringing development and innovation into performance and promoting Tanica in the domestic and foreign markets.

“We should target to increase domestic coffee consumption to at least 15 per cent.”

Kagera Regional Commissioner – General Brigadier Marco Gaguti

The company targets to increase its market share by exporting to North America, Europe, Asia, Australia and some African countries.

Inaugurating the restaurant, Kagera Regional Commissioner General Brigadier Marco Gaguti said the opening of the restaurant should be a catalyst and a challenge to open more to further market and change the whole picture of Tanica Factory.

Mr. Gaguti further appealed to Tanzanians to drink more coffee since only six per cent of the total production is consumed locally.

According to a report by the United State of Agriculture Department on Tanzania’s 2020 coffee production, the per capita coffee consumption in the country is 0.06 kg per year.

The low consumption rate is as a result of most consumers preferring tea to coffee due to its high price.

Mr. Gaguti indicated that the trend should change to create more health and employment opportunities and in the next five years, “we should target to increase domestic coffee consumption to at least 15 per cent.”

According to the Tanzania Coffee Board (TCB), domestic coffee consumption is growing at an average of between 1.5 and 2.0 per cent per year as the coffee drinking culture is gradually taking root in urban and semi-urban areas.

Worldwide, experts estimate that people consume about 2.25 billion cups of coffee per day.

Coffee accounts for about 5 per cent of Tanzania’s total exports by value and generates earnings averaging US$100m per year.

It provides direct income to about 400,000 smallholder farmers who produce 90 per cent of Tanzania’s coffee.

Strengthening cooperative unions is highly recommended to create profitable coffee marketing structures for smallholder farmers.

To this end state-owned Tanzania Agricultural Development Bank (TADB) has set aside Tsh.39.6bn (US$17m) to funding the country’s coffee production this season.

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