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Riham Cola breathes new life

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Riham Cola

By Moses Kaketo

Harris International, the manufacturers of Riham cola, has finally navigated the turbulent waters albeit with major bruises.

In December 2013, coca-cola reduced the prices for most of its products by almost 50%, in response to Riham that had set their prices slightly below coca cola’s. The cheapest coca-cola went for Ugx 800. Riham, Pepsi and other players had to follow suit by reducing further the cost for their drinks. These actions set off price wars and competitive rivalries.

What the players missed was that selling at a low price doesn’t provide sufficient revenue to meet the costs of production. To successfully compete on price, one needs deliberate cost focus strategy with clear streamlined processes. Coca and Pepsi could not sustain very low prices for their sodas for a long period, and had to adjust them upwards. That is how Riham cola has been able to gain gasp for a breath. How long this will remain, we do not know yet.

Industry watchers agree that Riham cola has so far been able to disorganize the soda market and one day, they will command some reasonable share.

The current state of Uganda’s soda market has been described as having reached the level of ‘‘hypercompetition.’­’ Hyper competition threatens efforts to sustain market share and trend is unpredictable. According to Prof. Richard D’Aveni, you are in hypercompetitive market if you find yourself challenged by innovative but aggressive competitors, not giving up despite your moves.

What ails Riham?

To remain relevant, Riham’s strategy was to diversify and attach the competition from all angels. They invested in producing several products beyond Cola drinks. One of the key products they launched was Lavita, a product that tastes like Coke’s Novida. Such a product that is said to taste like the competition surprised their nemesis, as such would entail multiple reactions by lowering prices would be very difficult to sustain – as the major manufacturing fixed costs must be paid anyway.

Other products like Riham WhatsUp and Riham Cola are said to look and taste similar to Coca Cola and Pepsi products. Their latest product on the market, Oner Juice resembles Afia, the Kenyan product that took the market by storm.

In the recent developments, while Coke and Pepsi moved to increase prices of their soda products, Riham chose to stay put. This tactical move is said to have already negatively impacted the incumbents.

The change in prices means soda consumers will have to part with more money in order to drink a bottle of a soda. In the changes, the 300ml glass bottle now costs Ugx 1,000 up from Ugx 800. Add the costs of depositing to a bottle, the cost is Ugx 1,400. The 330ml PET bottle now costs Ugx 1200 up from Ugx 1000. While the 2litre PET bottle now costs Ugx 4200 up from Ugx 3800.

For Riham, 320ml bottle now goes for Ugx 1,000. Even if they increased prices from Ugx 1,000 to Ugx 1,200, they also increased the bottle size from 350ml to 400ml.

The price rises come at time when soda sales of both Coke and Pepsi have been sluggish in the recent past. The increase in prices, industry watchers say, is likely to drive away some consumers to alternatives or to Riham soda which is relatively cheap. It should be noted that large share of Soda is consumed by the low-end segment in the youth bracket that are said to be price sensitive.

Riham is said to be riding on mistakes by Coke and Pepsi. The introduction of PET bottles by former is said to have weakened and almost wiped out Riham. However, as Riham was on verge of collapse Coke’s Kamini Soda became scarce. That is the time when Riham resurfaced. And it seems to have come back in a big way.

About the author:
Moses Kaketo works with Summit Business Review Magazine, holds a Master’s Degree in Business Administration from Uganda Management Institute, A professional diploma in marketing (CIM) and bachelor’s degree in Education. He sees business in everything. He loves writing business news, reviews and analyses.

Twitter: @mkaketo

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Buying or Selling of Land in Any Part Of Uganda Now Made Easy

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By BigEyeUg Team

A new and most organized real estate agency company is now in Uganda that can facilitate buying or selling of land and houses from any part of the country. Prime Plots under Prime Sponsor Company was created in May 2020 with a clear vision of providing high quality and personalized services to individuals, private sector companies, and government clients in Uganda.

If you are a potential buyer and looking for land, house or apartment, or need help in transferring your land title to your names or company names, then you should visit these guys. A property management company that seems to have the best and trusted real estate agent.

The mission of Prime Sponsor is simple. “To believe in loving your neighbor is to help them succeed”. To fulfill this mission, they perform every due diligence to ensure ownership and protect you the interested buyer or seller and above all, they strive to have a long relationship of friendship with all their clients.

For all those with property to sale, they use applications that will permit satellite view of the entire area, tracking coordinates with GPS that can send a client direct to the site location without being accompanied, they are the first to have such ease operation.

They have become a more trusted solution to all the property fraudsters in Uganda. Their current website is www.primeplots.primesponsor.co.ug

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CCBA installs hand-washing station at Mbarara Hospital

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Mbarara District Health Officer Peter Sebutinde demonstrates how to wash hands.

Mbarara District Health Officer Peter Sebutinde demonstrates how to wash hands.

By Our Reporter

As part of support to the Ministry of Health in the fight against Coronavirus in Uganda, Coca-Cola Beverages Africa (CCBA) in Uganda has installed a 5,000 litre Community hand-washing Station at Mbarara Referral Hospital in western Uganda.

CCBA, through Century and Rwenzori Bottling Companies in Uganda, has so far established five (5) 5,000litre Community Handwashing Stations for the general public use in Mukono (Namanve), Kampala (Kyambogo) and Mbarara (Makenke and Municipality).

General Manager Melkamu Abebe, in a message delivered by Mbarara Plant Manager Joackim Baluku, said the Company was committed to contributing to efforts to limit the spread of COVID-19 in communities.

“Across the Coca-Cola system we always look for meaningful ways to contribute to our people, including the communities we serve. We are guided by our company purpose: refresh the world and make a difference in the community. We do what we do because we are people-centered. We provided safety measures inside our Plants to protect our employees and their families, and now with the community hand-washing Tanks we are extending that protection to the general public,” Abebe said.

Mbarara Referral Hospital Director Celestine Barigye said the hospital had established two hand-washing stations but was overwhelmed by the numbers of people flocking the hospital.

Hospital officials had raised concerns about long queues of people gathering at the stations to wash their hands, as an additional COVID-19 risk.

“When the Pandemic began, following the President’s advice we set-up the two hand-washing facilities but they were not enough. With this new addition we can ensure more people wash hands faster and increase the safety of all. We also needed an extra reservoir tank and we have now received it. The tank from Coca-Cola has a large capacity so water availability is guaranteed,” he said.

Mbarara Referral Hospital currently has eight COVID-19 patients and has so far discharged 21 who have recovered successfully. The hospital has a bed capacity to handle 30 patients at ago.

The CCBA handover on Wednesday also included 305 20-litre hand-washing Jerrycans for distribution at various busy points in Mbarara, handed to the COVID-19 District Task Force. This is part of the 5,000 hand-washing Jerrycans pledged for the national effort against COVID-19.

Since the outbreak of the COVID-19 pandemic, CCBA has provided several interventions including; food relief worth UGX390 million from The Coca-Cola Foundation, distributed through the Uganda Red Cross Society to vulnerable families affected by the lockdown; UGX85 million to the Ministry of Health to buy medical equipment and sundries; public awareness worth UGX460 million and three pick-up trucks for the Ministry of Health COVID-19 Task Force. So far the total contribution during this period is UGX1.3 billion.



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Masaka teacher wins big in MTN MoMo Nyabo promotion

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MTN's Jimmy Ssempuuma (L) hands over Emily Tumuheki's cheque.

MTN’s Jimmy Ssempuuma (L) hands over Emily Tumuheki’s cheque.

By Our Reporter 

With the disruption caused by COVID-19, teaching is one of the professions that took a hit. It even gets harder for the private school teachers who are not earning salary as schools have been closed since March.

Emily Tumuheki, a private school teacher in Masaka, is one of the many teachers who have gone without pay since the closure of schools as a way of preventing the spread of the deadly Covid19.

Tumuheki, a resident of Nyendo town in Masaka district and a teacher of English at Kitendesa Modern Primary School reaped big from the on-going MoMoNyabo Together promotion as she won herself a whopping 5,000,000 Uganda shillings. The teacher could not believe her luck the moment she learnt that she had been chosen as a lucky winner in the MoMo Nyabo Together promotion.

When the hosts of the MoMo Nyabo Together show Zahara Totto and Patricko Mujuuka first contacted Tumuheki, she was in shock she decided to hand the phone to a friend of hers thinking she was getting conned. She however was able to compose herself and answer all five questions correctly.

While shedding tears of joy at her cheque handover, Tumuheki narrated how life had been so hard seeing as she was not earning and yet her bills kept on accumulating.

Tumuheki who hails from Ntungamo moved to Nyendo in search of greener pastures.

Currently, she is also pursuing a Bachelors degree in Secondary Education to grow her career.

The happy teacher was overwhelmed with the fact that she had indeed become a millionaire.

“I cannot imagine this real. This money will help me a lot. I plan on starting a shop where I can trade in food items like rice, sugar, salt and many others consumer goods.” Tumuheki said.

Tumuheki went on to add that because of COVID-19, she had resorted to quitting her job and starting something else but she did not have the capital to start her dream business.

“My life has drastically changed for the better,” said an excited Tumuheki in praise of the MTN MoMoNyabo promotion.

She named her mother, Frank Twikirize as her beneficiary. Twikirize was excited when her daughter called to ask if she had received 2,000,000 Uganda shillings that was sent to her phone. An excited Twikirize asked her daughter to thank MTN for remembering them.

“For one to get money in such times, it can only be by the grace of God,” Tumuheki said.

While handing over a dummy cheque, the Regional Manager Central Ssempuuma Jimmy congratulated Tumuheki Emilly upon her win. He also encouraged all MTN customers to continue using the MTN MoMo service, “You too can win like Tumuheki,” he said.

Tumuheki said she always used her MTN MoMo to buy airtime, minutes to make phone calls as well as data to surf the internet and social media. She thanked MTN for availing Ugandans with a chance to win money this year.

Apart from the winners called in studio, 250 people win 50,000 shillings directly every day. All you have to do is pay for airtime, bundles or any bill using MTN MoMo on the MyMTN app or dial *165# and stand a chance to win.



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Airtel, Game Stores partner to make payment for goods easy and convenient for customers

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A customer pays at the till using Airtel Money Pay assisted by a Game Store Executive.

A customer pays at the till using Airtel Money Pay assisted by a Game Store Executive.

By Our Reporter

Airtel Uganda has announced a partnership with Game Stores that will see Airtel Money subscribers pay for their purchases using Airtel Money Pay.

Airtel Money Pay is a service that enables Airtel Money subscribers to pay for goods and services using Airtel Money instead of exchanging cash for such purchases. The service enables both parties to immediately confirm these proximity payments via text message (e-receipt) that is sent to both subscriber and seller of the goods/service.

Commenting about this partnership, Airtel Money Head Merchant Portfolio Mr. Godfrey Muhindo noted that this new partnership will bring the highest level of convenience to Airtel subscribers who shop at Game stores.

“This payment method is going to ease the lives of our subscribers. Customers no longer have to carry cash or withdraw money, then pay when they are shopping here at Game,” he noted.

Muhindo also noted that the Airtel Money Pay innovation is timely as it is giving Ugandans an alternative and safe payment method in light of the Covid-19 pandemic.

Speaking on behalf of Game Stores, Frederick Olwit, the Game Store Manager, welcomed Airtel Money Pay onboard and thanked Airtel Uganda for the partnership.

“Our clients can now transact conveniently and securely from their Airtel accounts and pay for their shopping without hassle,” he said. “As merchants, once we receive the money on our Airtel account, we can use it to make other transactions like payments or transfer it to the bank.”

Mr William Kaye, the Managing Director of Universal Tracking Systems and a customer at Game Stores who has used the service confirms the effectiveness of the product.

“After shopping, I came to the till and made my payment via Airtel Money Pay. The till attendant immediately confirmed payment and in less than a minute, I was done. The service is indeed very fast and did not require me to pay an extra fee,” Mr Kaye said.

At the launch, a lucky draw was held for members of the media and three lucky journalists each received cash sent directly to their Airtel Money accounts to do shopping at the store.



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