mit pandriker
Interview with Mit Pandrikar
CEO and Co-Founder of Ruano Food Company
Where I live: Lusaka, Zambia
Zambia-based Luano Food Company, which specializes in honey and has now diversified into avocado processing, recently received investment from venture capital firm wCap. We spoke to co-founder and CEO Miit Pandoliker about entering the honey industry, the company’s growth opportunities, and the challenges of operating in the agribusiness sector. Below is a slightly edited excerpt.
1. What were you doing before starting Luano?
Before I started Luano, I owned a logistics company that I still run today. I discovered the honey business while transporting fertilizer to a remote area of Zambia and saw an opportunity. I grew up between Zambia and the United States, where honey is more appreciated.
2. Please give us an overview of Luano and the product range.
We recently changed from Luano Honey to Luano Food Company because we started a business other than honey. Our products include infused honey, honey barbecue sauce, chili sauce, chocolate honey spread, and a variety of spices. The unique selling point of our brand is that we do not own a single farm or hive and source from Zambian smallholder farmers across the country. It also promotes a regenerative agroforestry model for farmers to follow.
3. Please tell us about the company’s early days and how it got to where it is today.
We had just acquired the company at the beginning of 2019, so we were significantly affected by COVID-19 in the early days. When I bought it, the factory was closed and stored in containers. We relocated to the capital, Lusaka, and resumed business. When we first launched, there were only two product lines in retail stores. Currently, our number is 12. As an export-based company, we are unable to travel or trade due to the coronavirus. I started earning export income two years ago when I exported to the US for the first time.
4. We will introduce the process of establishing a processing factory.
Setting up a processing plant in Zambia was relatively easy. When it comes to honey, the less you do with it, the better. The rawer the better. Our factory simply washes the honey, removes excess moisture and packages it for distribution. Our first product was raw honey in 1 liter plastic jars, and it remains one of our fastest evolving products.
5. What opportunities do you see for avocado cultivation and processing in Zambia and how is Ruano leveraging this potential?
The potential for avocado cultivation and processing in Zambia is very high. There are existing plantations and we plan to support these farmers by becoming their market. Avocados are an excellent drought-tolerant tree crop, so this fits well into our agroforestry model. Our plan is to promote avocado cultivation alongside beehives and intercropping with other crops that support biodiversity, such as shade-grown coffee. We will also help these farmers take advantage of carbon credits from tree crops such as avocados.
Luano Food Company Honey Processing Facility
6. How did you secure your first customer?
Our first major retail partner was Shoprite Zambia. Luano’s previous owner then introduced us to the lead buyer for the relisting. I have also personally visited major supermarkets around Lusaka to introduce our products.
7. Where are your products sold?
Our products are available for purchase at all major retailers, wholesalers and e-commerce platforms across Zambia. It recently began selling on Takealot.com in South Africa and plans to expand to retail stores and Amazon. In the United States, we sell in bulk to various raw material buyers through our warehouse in Baltimore and aim to enter the retail market by the end of the year. There are also immediate expansion plans into the UK and Middle East in the first quarter of next year.
8. How can I stay competitive?
We strive to stay on top of the latest trends in packaging and biosustainability. It also ensures fair compensation for farmers while ensuring end users get the best price. Additionally, we are focused on innovating our product offering and developing new products.
9. What challenges do you face in running your business?
Lack of capital for expansion is a major challenge in Zambia, resulting in slow growth and high costs. This year, the country is also facing a power crisis due to a severe drought, and production has been halted. Furthermore, as a landlocked country, exports incur high costs before reaching their destination.
10. Describe some of the major trends you are seeing in the market.
Value addition with honey is undoubtedly the biggest trend, with the use of honey as an ingredient in wellness FMCG products on the rise. Globally, consumers are increasingly looking for “feel-good” ingredients in their foods.
11. Ruano recently received funding from wCap. How do you plan to use the funds?
The funds will be used to acquire an avocado oil processing facility.
