An analysis on Jam Market in Kenya, key variants analysis, competitive landscape and growth trends.

1. INDUSTRY PROFILE
SPREADS INDUSTRY MARKET ANALYSIS
JAM
An analysis of the modern trade data trends, analysis and industry growth between
2015 and 2016
December 2016
By:
Peter Mwangi,
Market Analyst

2. KENYA – ECONOMIC AND SOCIAL DEVELOPMENT OVERVIEW
• Kenya’s economy grew at an average of 3.8% during the past decade – well below its potential which is estimated to be about 6%, due to severe drought, election-related huddles and
occasional acts of terrorism which threatened to slow down the economy between 2007 and 2014. In 2015, real GDP however expanded by 6.0%, driven by a pickup in infrastructure
spending and strong consumer demand.
• Kenya is in the midst of a prolonged population boom that is expected to continue for some time. Total population was 46.7 million in 2015, an increase of 15.5 million over the figure in
2000. The median age in 2015 was just 18.9 years. The country’s potential workforce (those between 15 and 64 years) is growing even faster than population. Each year, an estimated
500,000 enter the labour market but the economy creates a much smaller number of salaried jobs. Unemployment was a shocking 34.7% in 2015. Youth unemployment accounted for
around two-thirds of the jobless.
• The Kenyan economy continued to grow, backed by increasing foreign investment and stable political leadership, as well as a growing focus on the development of youth entrepreneurship.
Backed by a strong GDP forecast of 6.5% for 2015, as well as inflation remaining at a single-digit level of 5%, retailing grew in 2015. The rise of the middle class with high disposable
incomes, as well as the improved infrastructure, which lowered transport costs for businesses, were key in promoting retail growth. Another key factor was the growing property boom,
allowing retailers to take up prime locations near residential areas for customer convenience, as well as the devolution of services to rural areas, encouraging the footprint expansion of retail
outlets nationwide.
3,171.3
Kenya Demographic, Socio-Economic Overview
JamMarketAnalysis
Products Overview - JAM
• Jam is one of Kenya’s most popular spreads in house holds today.
Leading Brand
• Zesta continues to enjoy the largest market share among the leading brands in the Kenyan market with over 70% market share. Since entering the Kenyan Market, Zesta has continued to
enjoyed loyalty among jam consumers.
Market Growth
• The increasing health benefits in Kenya of these products which are perceived to be natural and organic products, and subsequently the rising demand for them, has continued to fuel the
growth for jam products in Kenya as well as globally. The demand and supply disparities in Kenya has encouraged jam products imports in Kenya
Overview of Jam Flavors in Kenya
In Kenya the Kenya market, Jams are usually made from the following fruits; plums, apples, pineapples, guavas, strawberries, raspberries, mulberries and mangoes.
On the other hand, marmalades can be made from the following citrus fruits; limes, lemons, oranges and grapefruit.
Usage and Consumption
Jams are normally used as bread or toast spreads and dessert sweeteners.

3. SPREADS – JAM MARKET SHARE ANALYSIS
The Jam segment presents one of the fastest growing FMCG brands in Kenya today. The segments consist of three major competing brands [namely Zesta, Pep Jam and
Kenylon] and other jam mass brands [such as Ken, Rhodes, Vitrac, Natures, Stute, Robertson, Kol and Fragata among others.
INDUSTRY ANALYSIS
Zesta – This is a mass jam
product manufactured and
distributed by Trufoods
Industries Ltd. The brand
comes in various
variants/flavours which
include: Strawberry, Orange,
Pineapple, Red Plum, Mixed
Berry and Apricot
Pep – Manufactured and
distributed by Premier Food
Industries Ltd, Pep is
marketed in various flavours
which include: Pineapple,
Orange, Mixed Fruit, Apricot
and Red Plum
Kenylon – Kenylon is one of
Trufoods Industries Ltd
pioneer brands that represents
7% jam market value share.
Kenylon is also popularly
marketed in various flavours
which include: Orange,
Strawberry, Mixed Fruit and
Red Plum
Jam Market Share – 2015/2016
According to 2015/2016 Modern Trade Data Analysis, Zesta Jam brands continues to be the market leader with over 70% market share. The
market value share remained relatively stable while Pep Jam ranked second with an average market value of between 15% and 17%.
In the year 2016, other non leading brands tend to marginally increase in market value share. The brands include Vitrac, Stute, Kol, Fragata and
Rhodes among others.
3.88%
2.53%
4.88%
17.22%
71.49%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
OTHERS
KEN
KENYLON
PEP
ZESTA
3.33%
3.40%
5.29%
12.84%
75.50%
0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%
OTHERS
KEN
KENYLON
PEP
ZESTA
Source: Databridge Research Limited from company research, market scans and modern trade data analysis. All rights reserved.
JamMarketAnalysis

4. SPREADS – JAM VARIANTS ANALYSIS
INDUSTRY PROFILE –INDUSTRY ANALYSIS
Jam Variants Split Share Analysis – 2015/2016
There is a variety of jam flavors in Kenya and recent developments in the jam manufacturing firms in Kenya has seen introduction of real fruit jam besides the natural
flavored jams in the Kenyan market. The variety in terms of jam varieties in Kenya encompasses natural flavored real fruit.
3.60%
2.16%
5.29%
7.69%
17.07%
18.75%
22.36%
23.08%
0.00%5.00%10.00%15.00%20.00%25.00%
Others
Rasberry
Apricot
Pineapple
Strawberry
Orange
Red Plum
Mixed Fruit
4.15%
1.23%
4.77%
6.46%
18.00%
18.46%
23.69%
23.38%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
Others
Rasberry
Apricot
Pineapple
Strawberry
Orange
Red Plum
Mixed Fruit
JamMarketAnalysis

5. SPREADS –ANALYSIS OF STOCK KEEPING UNITS (SKU’S
INDUSTRY PROFILE –INDUSTRY ANALYSIS
Jam Variants Split Share Analysis – 2015/2016
There is a variety of jam flavors in Kenya and recent developments in the jam manufacturing firms in Kenya has seen introduction of real fruit jam besides the natural flavored
jams in the Kenyan market. The variety in terms of jam varieties in Kenya encompasses natural flavored real fruit.
24.15%
5.69%
6.15%
8.46%
8.62%
14.00%
32.92%
22.59%
5.53%
5.77%
8.65%
8.65%
14.18%
34.62%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00%
Others
340GM
450GM
250GM
300GM
1000GM
500GM
2016
2015
The 500gm pack size remains the most popular size
among jam products in the Kenyan market. The
consumption rate of 500GM jam size remained
stable between 201 and 2016 although there was a
slight increments in 2016.
The popularity of 500gm pack size can be attributed
to price-disposable income match among most
middle income population segment.
The 1000gm pack is also popular among jam
consumers with consumption rate of approximately
15%. The consumption rate remained stable in the
trading years 2015/2015.
Other popular pack sizes include 300gm, 250gm,
450gm and 340gm.
Local National Brand Owners (NBOs) continue to
maintain their standard packs sizes (100/150gm,
200gm, 225/250gm, 300gm, 400gm, 500gm and
1000gm), which commands the market against
foreign brand which sell in other pack sizes as well.
JamMarketAnalysis

6. INDUSTRY PROFILE –INDUSTRY ANALYSIS
SPREADS – SUMMARY OF MARKET SHARE ANALYSIS 2015
JAM MARKET SHARE ANALYSIS 2015 REPORT
Brand SKU Variants Sum Qnty Sum Vol KGS
% Qnty
Contrib
% Vol
Contrib
STUTE
430gm
Orange, Strawberry 12 5160 0.02% 0.02%
ROBERTSON
340gm
Black Currant, Rasberry, Orange 29 9860 0.04% 0.03%
FRAGATA
350gm, 375gm
Orange, Rasberry, Strawberry, Pieapple 62 21700 0.09% 0.07%
NATURES
450 gm Mixed berry, Lemon, Grape, Strawberry, Rasberry,
Orange, Pineapple, Rasberry 216 95450 0.33% 0.32%
RHODES
380gm, 450gm, 900gm
Apricot, Strawberry, Mixed Berry, Orange 185 125330 0.28% 0.42%
VITRAC
290gm, 320gm Apricot, Fig, Guava, Strawberry, Mango, Orange, Red
Grape, Red Plum 487 151490 0.74% 0.51%
KOL
400gm, 500gm, 1000gm
Mixed Berry, Red Plum, Orange, Strawberry 395 225500 0.60% 0.76%
DANA
250gm, 500gm
Red Plum 540 228750 0.82% 0.77%
GARDEN
340gm, 720gm Apricot, Fruit Mix, Mixed Berry, Orange, Pineapple,
Rasberry, Red Plum, Strawberry 597 294610 0.91% 0.99%
KEN
500gm
Mixed Berry, Red Plum 1510 755000 2.30% 2.53%
KENYLON
250gm, 500gm
Mixed Berry, Red Plum, Orange, Strawberry 3745 1454630 5.70% 4.88%
PEP
150gm, 250gm, 300gm,
400gm,500gm, 1000gm
Apricot, Mixed Berry, Orange, Pineapple, Red Plum,
Strawberry 12465 5134400 18.97% 17.22%
ZESTA
100gm, 200gm, 225gm,300gm,
500gm, 1000gm
Strawberry, Apricot, Red Plum, Mixed Fruit, Mixed Berry,
Orange, Pineapple 45470 21318200 69.19% 71.49%
TOTAL 65,713.00 29,820,080.00 100.00% 100.00%
JamMarketAnalysis

7. INDUSTRY PROFILE –INDUSTRY ANALYSIS
SPREADS – SUMMARY OF MARKET SHARE ANALYSIS 2016
JAM MARKET SHARE ANALYSIS 2016 REPORT
Brand
SKU Variants Sum Qnty Sum Vol KGS
% Qnty
Contrib
% Vol
Contrib
FRAGATA
350gm, 375gm
Orange, Rasberry, Strawberry, Pieapple 11 3850 0.01% 0.01%
ROBERTSON
340gm
Black Currant, Rasberry, Orange 18 6660 0.02% 0.02%
HALWANI
400gm
Strawberry 26 10400 0.03% 0.02%
CHABAA
430gm
Blueberry, Mixedberry, Pineapple, Strawberry 31 13330 0.03% 0.03%
STUTE
430gm
Orange, Strawberry 54 23220 0.06% 0.06%
RHODES
380gm, 450gm, 900gm
Apricot, Strawberry, Mixed Berry, Orange 196 100660 0.21% 0.24%
VITRAC
290gm, 320gm Apricot, Fig, Guava, Strawberry, Mango, Orange, Red
Grape, Red Plum 318 100980 0.34% 0.24%
NATURES
450 gm Mixed berry, Lemon, Grape, Strawberry, Rasberry,
Orange, Pineapple, Rasberry 274 122350 0.30% 0.29%
KOL
400gm, 500gm, 1000gm
Mixed Berry, Red Plum, Orange, Strawberry 473 282400 0.51% 0.68%
DANA
250gm, 500gm
Red Plum 953 352250 1.03% 0.84%
GARDEN
340gm, 720gm Apricot, Fruit Mix, Mixed Berry, Orange, Pineapple,
Rasberry, Red Plum, Strawberry 884 373140 0.95% 0.89%
KEN
500gm
Mixed Berry, Red Plum 2544 1272000 2.75% 3.04%
KENYLON
250gm, 500gm
Mixed Berry, Red Plum, Orange, Strawberry 5685 2211000 6.14% 5.29%
PEP
150gm, 250gm, 300gm, 400gm,500gm,
1000gm
Apricot, Mixed Berry, Orange, Pineapple, Red Plum,
Strawberry 13857 5362850 14.96% 12.84%
ZESTA
100gm, 200gm, 225gm,300gm, 500gm,
1000gm
Strawberry, Apricot, Red Plum, Mixed Fruit, Mixed Berry,
Orange, Pineapple 67315 31539400 72.66% 75.50%
TOTAL 92,639.00 41,774,490.00 100.00%
100.00%
JamMarketAnalysis

8. ANNUAL BRAND MARKET GROWTH (2015/16)
SPREADS – JAM MARKET VALUE ANALYSIS
3.88%
2.53%
4.88%
17.22%
71.49%
3.33%
3.40%
5.29%
12.84%
75.50%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
OTHERS
KEN
KENYLO
N
PEP
ZESTA
2016
2015
BRAND GROWTH ANALYSIS 2015/2016
Among the leading jam brand owners, Zesta continues to
command the largest market share. According to analysis
of modern trade data 2015/2016, ZESTA continues to gain
popularity among consumers with a CAGR of
approximately of 4%.
PEP Jam is ranked second with a market share of 12% in
2016, a decline of approximately 5% in 2015. Variation and
low brand awareness were sited as key factors that
contributed to PEP market share declined. However, there
has been ongoing promotion around the brand to increase
the awareness level which in turn could see the brand
market share increase in the forecast period.
KENYLON Jam brand is ranked third with a market share
of approximately 5%. Brand loyalty among some segment
of consumers ensured brand stability between the trading
period 2015/16. Investment on brand awareness such as
promotions, print and electronic media Ads would boost its
market share in the forecast period.
JamMarketAnalysis