CLASSIC FOODS

Classic Foods Limited operates as a food processing and distribution company strategically positioned within Kenya's agricultural sector. Founded in 2007 by the husband and wife team, Wachira Kariuki and Stella Kimemia, the company was born from Kariuki's personal experience with the market access challenges faced by farmers in his rural upbringing. Initially, the business model focused on the bulk purchase of raw milk from local farmers for resale to major processors. This phase was a direct response to the post-harvest losses and market gluts that plagued smallholder farmers.

Frustrated with the limitations of being a middleman, Kariuki, a former accountant, pivoted the company in 2009, transforming it into a food processor. This significant step was financed through loans, including one collateralized by the family home, and an initial capital injection of over USD 3 million. Kariuki's strategic vision and engineering focus are complemented by Kimemia's role as Managing Director, where she oversees daily operations, human resources, accounting, and sales. This synergistic partnership has been crucial to the company's ability to manage collections and maintain financial health.

The company's product line has expanded organically to address supply chain needs. To ensure a consistent and quality milk supply, they began producing animal feeds for their partner farmers. This led to milling maize flour for human consumption. The product portfolio now encompasses a wide range of goods, including pasteurized milk, yogurt, various flours, honey, tomato sauce, and fruit juices. Classic Foods serves a broad market in Kenya, with products available in both large supermarkets and small local stores. The business model is centered on integrating the agricultural supply chain by processing and distributing products sourced from a network of over 20,000 smallholder farmers. To further support this network, the company established a non-profit arm, Enhance Business Solutions, which provides training to farmers on best practices.

Keywords: food processing, agribusiness, dairy products, supply chain integration, smallholder farmers, agricultural value chain, food and beverage, Kenya, animal feeds, juice processing