Sep 24, 2012
Bakhresa Grain Milling Malawi & Mozambique (BGM Malawi) sells packaged wheat flour to commercial bakeries, small bakeries, retailers and supermarkets under a variety of brands and package sizes ranging from 5 to 50 kg. To date, over 1,000 small bakery staff have received business and technical training and over 1,800-2,000 staff from more than 1,000 small retail outlets have received merchandising support.
BGM Malawi sells packaged wheat ﬂour to commercial bakeries, small bakeries and small retailers, and supermarkets under a variety of brands and package sizes ranging from 2-50 kgs. Commercial bakeries requiring larger stocks tend to purchase 25 kg and 50 kg packages. To target smaller bakeries and retail outlets with lower inventory requirements, the company recently launched a 10 kg package size.
The company has four primary distribution channels, two of which serve small retail shops and bakeries:
• Distributors: 60% of BGM Malawi’s volume is channelled through ﬁve major distributors that resell to small retail shops (90%), small bakeries (5%), and individuals (2%).
• BGM Malawi branches: 10% of volume is sent to company branches that sell to small bakeries and retail shops.
Distributors collect packaged ﬂour directly from BGM Malawi’s packaging plant in Limbe and 90% of this volume is then sold to small retail shops through distribution outlets located throughout rural and urban parts of
the country, each servicing an area of 15-20 km. retailers, which typically purchase 14-35 bags on a weekly basis, are family-owned, employ one to two assistants, and range in size from 30-60 square meters. Small bakeries located in suburban and rural markets throughout the country, but predominantly in the southern region, comprise 5% of the distributors’ sales. These bakeries, on average, employ three to four employees and
purchase one to two bags of ﬂour on a daily basis.