Choppies reveals growth strategy with Ukwala acquisition and expansion into Kenya

By Frazer Jones
With 124 stores and seven distribution centers operating throughout its native Botswana along with South Africa and Zimbabwe, Lobatse-based Choppies is...

With 124 stores and seven distribution centers operating throughout its native Botswana along with South Africa and Zimbabwe, Lobatse-based Choppies is both the leading supermarket chain in Botswana and the fastest growing supermarket chain in most of the Africa market. This week, the chain announced further strategies for growth and expansion north of its current territory. On Monday Choppies revealed a conditional agreement with Ukwala Supermarkets to acquire 10 of the Kenya-based supermarket chain's locations and rebrand them under the Choppies name.

RELATED TOPIC: Kroger acquires Hiller's Markets: the growing advantage of thinking small and local

Choppies will be operating its new locations through a joint venture partnership with the promoters of Export Trading Group, an agricultural commodities trading and logistics business. The Kenya-based local partner will retain control 25 percent of the property, with Choppies holding the majority share.

More than an acquisition of opportunity, this acquisition of Ukwala Supermarkets’ Kenya locations represents a key growth strategy for Choppies.

RELATED TOPIC: Are producers ready to meet Africa’s rising food demands by 2030?

The Ukwala locations being acquired are in advantageous locations within Kenya—as Business Day Live reports, three of the 10 locations are within the country’s capital of Nairobi, with an additional two in major urban center Nakuru and five in the populous port city of Kisumu. Acquisition of the Ukwala locations grants Choppies a strong established footprint and immediate access to some of the biggest consumer markets in Kenya.

RELATED TOPIC: Nestle to focus on African infrastructure and marketing to cultivate growth

According to the Star Africa, Choppies has invested $10 million in this agreement as part of its plan to operate at least 200 stores in at least six countries by the end of 2016. Choppies is also eyeing the potential for growth in Tanzania and Zambia.

For more coverage of African business ventures, visit our sister brand African Business Review

Let's connect!   

Check out the latest edition of Food Drink & Franchise!

[SOURCE: Business Day Live; Star Africa]


Featured Articles

Ahold Delhaize Targets Sustainability & Omnichannel Goals

Multinational food business Ahold Delhaize prioritises sustainability and omnichannel innovation as part of its new plan for financial and strategic goals

US Bird flu Turns Spotlight on Milk Pasteurisation

As bird flu sees sales of raw milk spike, we look at the work of Tetra Pak, a giant in the world of pasteurisation.

Nestlé 'Meeting Sustainability Targets on Nescafé Coffee'

Nestlé is meeting targets on sustainably-sourced Nescafé coffee, & has donated 21mn plants as part of global ESG initiatives, a company report claims

Coffee Prices Soar as Extreme Weather Hits Brazil & Vietnam


Guinness & Carlsberg Back Drought Resistant Grain for Beer


Tyson Foods Shares Plummet in Face of Costs & Inflation