Soft drink brand Softa is set for closure after frustration from market forces and lack of capital to enhance operations, leading to huge losses.
The brand that had operated for two decades has said it is set for closure and has began sells of its assets.
The assets, which are estimated at Sh1 billion, will be seized so as to give the company resources to capitalise on the piece of land where the plant previously stood.
Speaking to the Star, MD Peter Kuguru cited frustration as he tried to compete alongside the global brand Coca Cola.
“It is hard to compete alongside an established brand who are at disposal money to run activities,” the business man said.
The company had two processing plants with 2,000 casings of soda being produced at the time of its operations.
Kuguru pointed out that as at the moment business has become so bad that it takes days for the company to market what they produced in a day.
“We produce for 24 hours and then we close the plant and market slowly until we sell all of them and then we produce again,” Kiguru said.
The businessman pointed out that they had tried to reach various proprietors but their efforts have failed to bear fruits.
Kuguru said a capital injection of Sh500 million would have saved the company.
“We expected to find a partner who would invest at least half and this could have salvaged the company,” Kiruga said.
He said that he is seeking alternative business ventures to keep the money rolling in.
Kuguru has carried blame to the government citing that it has failed to support local entrepreneurs.
“Local businesses are having a hard time as they get little or no support at all from the Government. Brands that could change the face of the nation are falling,” he said.
The brand was a family business under the company roof Kuguru Food Complex Ltd (KFCL) founded by Kuguru and his wife in 1988.
The company later partnered with four other family members and was initially launched with Sh110 million loan.