A REGIONAL BEVERAGE POWERHOUSE BASED IN TANZANIA
JAMBO FOOD PRODUCTS LTD
Quenching East Africa’s Thirst Jambo Food Products continues to upscale its beverage production capabilities at its highly efficient site in Tanzania, the company targeting product and geographic expansion in 2020 Writer: Tom Wadlow | Project Manager: Matthew Selby 2 | Africa Outlook issue 79
FOOD & DRINK
T
he world and life as we know it simply wouldn’t exist without water. From carving landscapes and fuelling photosynthesis in plants to powering industrial activity and quenching human thirst, it is, undeniably, the most precious resource on earth. And while it appears to be in abundant supply, access to fresh drinking water is far from universally available. Yes, around 70 percent of the planet’s surface is covered by water, but 97.5 percent of it is saline and oceanbased, and much of the remaining
Salum Khamis Salum, Founder and Operations Director
2.5 percent of freshwater is locked in glaciers and snowfields. In short, just 0.007 percent of the world’s supply is available to feed its 7.7 billion people. Responsible sourcing, production and distribution of safe drinking water is therefore paramount, and in Tanzania, this pressing need prompted entrepreneur Salum Khamis Salum to set up a new business. “The idea of setting up a beverage company was inspired by an urgent demand to find a solution for our society to obtain safe clean drinking water at an affordable price,” he explains. Africa Outlook issue 79 | 3
JAMBO FOOD PRODUCTS LTD “Jambo Group is one of the leading economic forces in Tanzania, and we understand that safe clean drinking water defines civilisation.” Jambo Food Products is the company responsible for bottling and distributing water around Tanzania and the surrounding region, as well as numerous soft drink and juice products. It is part of the wider Jambo Group of Companies, which was initially more than two decades ago in 1998, with Salaam serving as the Operations Director and the younger brother of the family enterprise.
FUELLING THE REGION The Food Products business is one of the region’s largest beverage manufacturers, based in Shinyanga which is in the north of Tanzania around 100 kilometres from the stunning Lake Victoria. Set up in 2011, recent investments have allowed it to reach the next level, as Salaam explains: “The company has increased production by installing additional two high speed lines of 36,000 bottles per hour capacity, each from KRONES in Germany. “Hiring more professionals,
ABOUT JAMBO GROUP OF COMPANIES Jambo Group is one of the leading economic forces in Tanzania with major investments and successful operating companies in several key business sectors. Its divisions are as follows: JAMBO FOOD PRODUCTS: Established in 2011, this division produces over 24 types of juice, water and carbonated soft drink products from its hub in Shinyanga. JAMBO PETROLEUM: Engages in the purchasing and distribution of petroleum products within Tanzania. The company has a depot in Shinyanga region and 10 petrol stations within the Lake Zone region, with 13 tankers in its fleet. JAMBO CARGO TRANSPORT: Established in 2005 and operating a large truck fleet, this entity largely employs its services in the collection and distribution of the other divisions’ products within the East Africa region. JAMBO SPINNING MILLS: A yarn manufacturing company located in Arusha, Tanzania. Incorporated in 2005, it commenced operations in 2008 after being officially inaugurated by the President of the United Republic of Tanzania, his Excellency, Hon. Jakaya Mrisho Kikwete. Operating with 13,000 spindles, 85 percent of its yarn is exported to China while the remaining 15 percent is sold to local textiles companies. COMPANY VISION: To be a conglomerate stretching across Africa providing high quality manufacturing goods and services. COMPANY MISSION: To give every Tanzanian a choice to enjoy worldclass quality products at affordable Mwananchi prices, and to be the first choice among other food product companies in East Africa by partnering with our customers, employees, suppliers and community.
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Robert Bosch East Africa The manufacture of food and beverages involves numerous energy-intensive processes. In addition to power and cooling, it is essential to have process heat in the form of steam, so that maximum product quality is maintained and the strict regulations for food safety are observed. Uninterrupted operation is therefore indispensable. It is important at the same time to produce energy- and cost-efficiently in order to remain competitive. The steam boiler systems from Bosch have proven themselves as being ideal for these tasks. Many well-known manufacturers such as Jambo, EABL, Nestlé and Heinz Tomato Ketchup rely on Bosch’s energy-efficient and low-emission systems for their energy supply.
www.bosch-industrial.com
enhanced business reporting systems, an increased professional sales team and adding to our truck fleet have all been carried out hand in hand with increased product differentiation to cater to a wide selection of distinct tastes.” Indeed, Jambo Food Products today produces and sells 14 juice products and 10 different types of carbonated soft drinks, a portfolio of beverages which is distributed to customers via a 300-strong fleet of trucks, 100 of those being added in the past year. “We are hoping to add up to another 100 trucks early next year to cover markets in neighbouring countries like Rwanda, Burundi and Uganda,” Salaam adds. “We have already covered 60 percent of Tanzania because the demand for our products is so high – we have been seeing sales increases of 40 percent month on month, and can now produce 100,000 beverages an hour at our facility.”
FOOD & DRINK
Process heat and steam for production Efficient. Durable. Reliable. www.bosch-industrial.com Three good reasons for high quality boilers from Bosch ▶ Reduced energy costs for higher competitiveness ▶ More than 150 years of experience manufacturing efficient boilers ▶ Durable design and consistently reliable
Head office
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JAMBO FOOD PRODUCTS LTD
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FOOD & DRINK
German machinery producer Krones is an important supplier to Jambo Food Products
But what is the secret to this exploding popularity? For the Operations Director, it comes down to an unwavering commitment to quality and affordability. “Jambo products are made by a technical team which is constantly in touch with people on the ground to enable us to continuously improve and create a wide range of quality products that are very fairly priced,” Salaam says. “This has also been achieved by the acquisition of highly efficient machinery from Germany which incur very few breakdowns. Our consumers have therefore been able to differentiate the quality of our products from our competitors.” Other notable investments have also helped operations to become more efficient, including the acquisition of new plastic caps and preforming machinery, important steps if Jambo is to offset challenges such as high taxation and the cost of importing raw materials.
LOOKING AHEAD But despite these obstacles, Salaam is confident about the outlook for the next few years. As well as fuelling Tanzania and its East African neighbours through drink products, the company is now turning to food manufacturing as a means to bolster its portfolio. The Operations Director confirms that Jambo Food Products will be adding several new lines, including biscuits, candies, bakery goods, honey and pulp extraction, moves which will not only diversify its offering to customers, but also reduce purchasing costs of raw materials. Salaam is also quick to praise the role of suppliers in doing their level best to keep costs down while maintaining high quality provision, labelling them all (be them ingredient suppliers or equipment manufacturers) as critical to the ongoing success of the business. And they will continue to play a critical role as Jambo Food
Products enters the next phase of its development. Summing up his outlook for 2020, Salaam concludes: “A key question for us in 2020 is how to absorb the increased tax without passing the cost onto our consumers. Also, upcoming regulations on plastics is an area we will be keeping an eye on, especially given our plans to expand our business through exporting to countries outside of Tanzania. “To achieve our goals, we will need to increase and cultivate loyalty in our customers by constant engagement and corporate social responsibility, as well as increase efficiency in production and distribution.”
JAMBO FOOD PRODUCTS LTD Tel: +255 62 611 1117 info@jambogrouptz.net www.jambogroup.co.tz
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JAMBO FOOD PRODUCTS LTD Mwanza – Dar Es Salaam Road, Shinyanga Tel: +25562 611 1117 , +25562 266 6692, +25562 266 6693 info@jambogrouptz.net www.jambogroup.co.tz PRODUCED BY AFRICA OUTLOOK MAGAZINE