Business Daily (Nairobi)
Steve Mbogo
18 November 2007
Sasini Tea and Coffee promises to export the African coffee drinking culture to the rest of the world following the launch of its first coffee shop in Nairobi.
The shops will be trading as Savannah Coffee Lounge and the Nairobi outlet will soon be followed by two others in Dubai and London. Sasini is pumping at least Sh100 million in the coffee shops chain in the next 15 months in Nairobi only, where it plans to have three such coffee lounges.
In Nairobi, the coffee shop culture is gaining popularity especially among the emerging middle class who use the outlets for leisure and business meetings.
Companies like Nairobi Java House, which operates seven coffee shops in the capital, have already made their mark with their freshly roasted Kenya coffee.
The other main cafe chain is the Tamarind Group, which operates the Dorman's Coffee outlets with several branches in Nairobi. Other non-chain coffee shops have also come up in Nairobi.
In Dubai and London, Sasini will square it out with other global brands like World Coffee Lounge, Wally's World Coffee and Starbucks Coffee, the leading retailer, roaster and brand of speciality coffee in the world.
The Savannah coffee lounges are expected to offer the listed Sasini business line diversification from the growing, processing and packing of tea and coffee.
"The future today is value addition.
We cannot just sell coffee at the auction like we have done at the past. This compliments our packaging business," said Sameer Merali, a director of the company.
Mr Merali is the son of industrialist Naushad Merali, the chairman of Sameer Investments Group, which owns Sasini and Sameer Tyres, among others.
The company has signalled its global intentions with the recruitment of an export manager.
Initial forays are expected in Russia, European Union, Iran and Pakistan where research done by the company showed rising popularity for packaged Kenya tea and coffee.
"We do not have to sell Kenya abroad; the problem is that Kenyans are not taking advantage of the existing awareness and goodwill about Kenyan produce. Every body knows Kenya," said Mr Merali.
The Savannah Coffee Lounge concept was developed with an African theme, the first time in the world that a coffee shop has taken the identity to launch into the international market.
The Savannah Coffee Lounge is betting big on the changing trends and lifestyles of Kenyans and international visitors.
The lounges will act as business meeting points to get away from the traditional formal setting. The concept, according to Mr Merali is popular in Dubai where every shopping mall has tens of coffee shops.
"When we went to sell the concept in Dubai, they said 'oh why buy the idea when we already have all these coffee shops' but accepted it because of its African theme," Mr Merali said.
The shops interiors have an African feel including decorations, colour, sculptures and music and wildlife. Plans are afoot to hold music and book launches and related activities within the shops.
The shops seek to replicate the success of Chinese and Indian food culture across the world, evident in Chinese restaurants and India's chicken tikka outlets in major cities across the world.
Expansion of the coffee chain will be based on a franchise concept with ten weeks needed to replicate one coffee shop.
The company plans to open four to five shops every year starting January across the world.
"Eventually, Savanna coffee lounges will have franchise holders across the globe, built on this unique approach and Kenyan style," said Mr Merali.
The new business line comes just when the company was given a go ahead to list a Sh600 million corporate bond to finance its expansion into value addition of its coffee, tea and horticultural products.
Part of the money will be used to upgrade its information technology systems and upgrade its coffee mill.
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