On September 26th, an administrator was appointed to take over all the company assets of the insolvent juice processor, Sky Foods.
- •When Sky Foods opened a juice processing plant in Juja four years ago, it was an optimistic moment for ‘TreeTop’ juice which was slated to make a comeback.
- •In 2017, Sky Foods had acquired ‘TreeTops’, a brand of juice that had last been stocked in Kenyan shops in 1995, from Unilever Kenya.
- •The KSh 500 million processing plant was expected to produce 12 million liters of juice every year.
“I, official receiver…give notice that I have been appointed as administrator of the property of Sky Foods Ltd. by holder of a qualifying floating charge,” the notice stated.
“Take note, that no action can be taken against the company (Sky Foods) without the consent of the administrator,” the notice added.
The Industrial and Commercial Development Corporation (ICDC) had invested KSh 100 million in equity stake at the plant. The enterprise’s board chairman, Bernard Njoroge, sought to resuscitate interest in the once-popular juice. He was a former director of Del Monte Kenya, a giant player in the country’s juice production.
The company’s fortunes may have dwindled because of the high cost of doing business. With many Kenyans experiencing a shortage of disposable income, fruit juices may not be a priority for their household budgets.
The market is also competitive, with established beverage producers and bottlers. The company’s attempts to ride on a popular 90s juice brand was probably not a great idea. Perhaps ‘TreeTops’ was not enough a brand for nostalgia.
