Monrovia – Businessman Amin Modad’s PUR Still Mineral Water and Daybreak Juices could easily be compared to some of the best manufactured in countries with far better business environments than Liberia’s.
Report by Rodney D. Sieh, [email protected]
Unfortunately, importers, mainly foreign owned enterprises, control the economy and drive these changes.
In many cases, if Liberian owned institutions engage the government for specific incentives, we don’t get it; however, the foreign institutions are capable of getting what they want and we ride along” – Mr. Amir Modad, CEO, Atlantic Foods Company
Although he is still trying to find his foot in the market dominated by foreign importers, the challenges are enormous especially when the environment supports foreign investments to the detriment of its own.
“We have difficulties getting our Water and Juices into some supermarkets and large outlets,” Modad noted as employees at the Atlantic Foods Company work the assembly line at the US$1.4 million plant along the Marshall Road just off the Robertsfield highway.
This is the largest Liberian owned beverage plant and the only juice plant in Liberia other than Coca Cola.
“Our products are very good and comparable to some of the best ones imported. I don’t produce anything that my kids and i would not consume.
Yet, market penetration is a challenge when we still have to rely on the importers (our competitors) who also own or control the distribution channels such as the various supermarkets.
Most of the importers also own the retail outlets.
Though it is natural that one would try to protect their investment, the government needs to be proactive in ensuring that Liberian made products have fair visibility in the supermarkets and outlets.
If you go into most super marketers, you’ll notice rows allocated to the imported beverages and water, while only one or two rolls are given to each local water and now juices.
“I have calls daily from patrons and supporters who walk into supermarkets and cannot find our products.”
Modad says he chose the name PUR to signify the purity and crispness of the water just spelled in a unique way.
The Juices, branded Daybreak relate to what the typical Liberian goes through daily; as day breaks, the hustle to survive begins.
“You must understand that, one of the factors that motivated me to get into food production beginning with juices and water is to be able to make available to the masses healthier and nutritional products for less.
I lived here during the war and I lived here during the Ebola epidemic; I saw how the cost of water, juices, and food skyrocketed when we could not get ships in and couldn’t go out. It was then that I committed that I will diversify into food production. Even if the borders close or there is a crisis, I’ll be able to provide clean and safe water for everyone.”
Part of the brand’s success is attributed to the attention to quality and proper packaging. Koilor Alvin Guladiah, a young recent graduate of the University of Liberia works as a chemist and line supervisor for the company.
Four months on the job, Guladiah says, the key to the company success is the quality and taste of its water that begins stringent purification process.
The water comes from a borehole deep into the water table; in addition to initial chlorination, it passes through a 5 stage purification system –Quartz sand filtering, Active carbon filtering, Reverse Osmosis, Ultraviolet sterilizing, and Ozone sterilizing. Maybe if you chlorinated the water, this one reduces the chlorine concentration.”
Word-of-Mouth Pushing Water Brand
The company that was just launched in December 2017 has 42 staffs.
Modad says that number could easily rise into the sixties in the coming months as they penetrate the market and demand increases. In the company’s yard, we noticed a cafeteria and a cook preparing meals for staff.
“These guys are committed and hard working. We feed our staff daily and compensate them well.”
For now, Modad is relying on creative marketing and word of mouth to break into a market Liberians rarely take advantage of.
“I must express my thanks to the people. Liberians themselves are going into these supermarkets and they are not only asking for PUR water or Daybreak Juices, some people are asking directly ‘where’s Amin’s Water’ and when they don’t find it they call me and say we are here at this Supermarket and they do not have it.
So, over the last few weeks, a couple fo these outlets that were initially reluctant to showcase the products are themselves calling and saying, ‘you need to get some of your products here.’ I’m grateful to God, Liberians are embracing them”
It is entrepreneurs like Modad that new President George Manneh Weah has pledged to cater to during his first term. In his inauguration speech in January, President Weah indicated that Liberian-owned businesses will not be marginalized but given equal opportunities with foreign businesses or investors during his administration.
“As we open our doors to all foreign direct investments, we will not permit Liberian-owned businesses to be marginalized.”
“We cannot remain spectators in our own economy,” President Weah said.
According to President Weah, his government will prioritize the interests of Liberian-owned businesses and offer programs to help them become more competitive.
A Page from Next-Door Sierra Leone
Modad hopes that comes sooner than later.
“The government should ensure that locally-produced water, juices and food products that meet the required standards are properly showcased and sold in all supermarkets and stores.
One supermarket told me that they cannot exhibit a poster ad of the products because it would be unfair to other beverages and distributors that are also not being given the opportunity to put up posts and ads.
Wow, how many of these products are locally produced with the entrepreneurs taking the risks and thriving to compete?
So, in essence, we are competing not only with the importers, but also with the CEOs or firms in Dubai, Lebanon, Togo, Ghana, and Ukraine where many of these beverages (some of far lower quality that ours) are being imported from.”
Remaining hopeful, Mr. Modad counts on engaging the new administration as soon the all officials are seated. “One of the things too is that we launched the plant just when we had this long hiatus in the election process and the government is not yet fully functional.
“I can’t be negative. I hope that when we do have the opportunity to sit and discuss some of the issues we are experiencing, the administration will be proactive, pro-business, and supportive of empowering Liberian entrepreneurs as promised by the President. I don’t believe it is difficultly to see how much such an investment can impact the economy.
1. This is the only juice or beverage plant in the country other than Coca Cola.
2. It provides jobs and skills development for Liberians
3. It provides market access to the local farmers and producers of the fruits needed to produce the juices
4. It has the potential of generating export revenue for the country and positively impacting our trade balance that has been in the negative consecutively
5. It is Liberian owned. The President has stated that his focus will be on Liberian entrepreneurship; if you look around, you don’t have many Liberian entrepreneurs that have invested millions in their own country.”
Furthermore, if this administration is to succeed in building a sustainable economy, the growth agenda must center on developing Liberian owned industries that add value to our resources for export as well as self-sufficiency.”
While he anticipates the fulfillment of the President’s promise, Modad points to next door Sierra Leone, which like Liberia had been similar post-war challenges including inadequate supply of safe drinking water.
Now, you’ll find more water and beverage plants in Sierra Leone because the government made considerable strategic efforts to support enterprises and value addition.
Modad, who also owns the Bella Casa Hotel, the largest Liberian owned hotel in the capitol says, if supported, the plant has the capacity to produce 100 % fruit juices and diversify into other food processing.
Currently, our monthly consumption of juice concentrates can be estimated at US$ 30,000.00; imagine if business improves and Liberian farmers are better empowered to supply all our needs; how much this will impact the economy.”
“In addition to the incentives and unfair competitive environment, electricity cost is one of our main challenges’.
With some initiative and push by the government, we could get lower priced public power to our plant, duty free on fuel, or tax breaks that would compensate for the high costs of production.”
“We currently require 280 KVA generators to power the plant; these consume a lot of fuel per month.”
Foreign Businesses Gets Priority Over Liberians
Unfortunately, Modad laments, importers control the economy and influence the regulatory environment to the disadvantage of local producers.
This continues to impede value addition and the emergence of a potent industrial sector.
For example, Modad explains that quite recently, Pres. Sirleaf issued an administrative regulation that assessed surcharges on imported goods that are produced in locally.
This was a welcoming measure that we fought and engaged the government for that was intended to support local producers and encourage value addition.
Disappointingly and shockingly, when the list was published, Water, Juices, and other locally manufactured products were totally eliminated.
Looking at those products that were prominently listed….Cement, Confectionery, Biscuits, Plastic Wares, Plastic Furniture, Foam Products, Candles, Soaps, Detergents, Zinc, Steel, Alcohol, etc , most are predominately foreign owned.
I’m in no way being discriminatory, but I believe that Liberian businesses must be afforded the fair playing field to compete with our foreign counterparts.
There also many foreign partners who are equally impacting the economy and must be encouraged.
However, how was this regulation intended to benefit Liberian producers when you have only about six or seven Liberian owned companies engaged in manufacturing or full-scale production… then, 80% of their products were not listed?
These include Atlantic Foods Co.- Water & Juice Plant, Josephine Francis’s Aquarius Water, Jeanine Cooper’s Frabrar Rice processing facility, Premier Flour Mill, Atlantic Water, Fumba Trawally’s National Toiletries, and Garley’s Nail Factory.
Look, It is a global postulation that 80% of 10 new businesses fail within the first five years.
Probably, this is even higher in such an economy as Liberia; thus, this is the period that greater incentives and support must be given Liberian entrepreneurs to encourage capital formation, expansion, decentralization, and R&D.
Modad further recalls that similar attempts to venture into manufacturing by other Liberians including Elie Saleeby, President of Premier Milling Corporation (PMC), Benoni & Mai Urey with their Poultry Farm and Juice Plant, and Monie Captan (Tissue factory), met stiff resistance by powerful importers and exacerbated by weak policies and government initiatives.
For the past 2 weeks Liberia experienced a protracted shortage of fresh eggs; the price for a cart of eggs rose by almost 100%.
Not new stock, just due to the shortage, importers hiked the prices. If the Urey Poultry farm and eggs production facility was allowed to survive and supported, would we have had such a shortage?
He says incentives will go a long way in helping his beverage company. I welcome the challenge of competing. I have taken up the challenge to prove that Liberians can do business. We’ve invested $1.4 million in this beverage plant and will not bail out.
If they can give us the tax breaks and incentives to thrive including the surcharges on imported goods we produce, I can assure you we will be profitable and be encouraged to reinvest and diversify. Until that happens, Liberian businesses will continue to only survive and we will never realize true sustainable economic growth.”
Imagine, Liberia is still a net importer. We are still importing juices, water, soft drinks and edible oil.
“If you look outside we have already started constructing a facility to begin processing and bottling our traditional palm oil for domestic consumption and export.
My intention is to invest into producing the food products that we need domestically. I think this supports self-sufficiency and the idea of expanding the market for local producers.
Private Sector Key to Employment Push
He further stated that it is important for Liberians and the Government to support domestically produced products and local entrepreneurs.
This creates more opportunities and great example for others to follow.
“Proudly, we can say we have over US$ 8 million invested in Liberia.”
“So, it is in the government’s interest to create the environment for us and other Liberians to succeed.”
“They say there are no millionaires in Liberia… there are, but we usually don’t promote and celebrate our own; we don’t see value in ourselves or what Liberians can do, except when you are in government.
I believe ten sustainable Liberian businesses will have more positive impact on the economy and society than one large foreign concession – and there are people here who can do it.”
The lack of interest and support he says has driven Liberians to to seek opportunities in other countries.
“A lot of Liberians who are capable of doing competitive businesses here are discouraged so much so that they are scaling down.”
“I know a lot of Liberians who are opening businesses in Ivory Coast and Ghana because of the business-friendly environment.”