Funguo Investments acquires majority equity stake of Feastfoods Processors
Funguo Investments has acquired a majority stake in Feastfoods Processors Limited, a food processing company that has been set up to manufacture fruit juice puree. The company concentrates its operations in Kwale County. The value of the project is sh1 billion, and the funds for the first phase have already been availed.
‘’We’re sure this is going to be a success because there’s a ready market for fruit concentrates both locally and internationally,’’ said Funguo Investments Limited CEO Mr Kenneth Muchina.
The transaction will see Funguo own 51 percent stake of Feastfoods Processors, a company set to produce puree and concentrates of mango, pineapple and passion from locally grown fruits, mainly from Kwale County as well as other counties in the Coastal and lower Eastern regions. It is estimated that about 65 percent of puree concentrate is usually imported.
The completion of the transaction is subject to regulatory approvals.
The establishment of the Feastfoods factory is in partnership with Feastfoods Processors Limited and will in part be funded by a long term debt of sh276 million from ICDC, part of sh425 million that is already available in the first phase.
According to the company, Feastfoods is expected to directly employ over 50 employees and provide a market for over 30,000 farmers in the coastal county who often suffer losses for lack of a ready market for their fruits. They will in the early years supply Feastfoods with mangoes, passion fruits and pineapples, with a likelihood of other fruits and even vegetables and nuts being added to the portfolio of farm produce that Feastfoods will process.
“Fruits from the coastal region of Kenya have largely been going to waste with post-harvest waste levels for mango as an example estimated at 55 percent of total produce. Feastfoods intends to offer a partial solution to this problem by buying from the farmers and processing the fruits to make puree and concentrate to sell to local and export markets juice and other food product manufacturers,” said Kenneth Muchina, Funguo Investments Limited’s CEO.
It is expected that the ground breaking for the processing plant will be in 3 months with the commissioning of the state-of-the-art plant slated for October this year.
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