[ Tips ]
Jose B. Alvarez;Natalie Kindred
Agribusiness;Apparel accessories;Candy & confectionary;Shipping;Sugars & sweeteners;Vegetables
In 2013, Kenyan horticulture producer and exporter VP Group is weighing potential expansion opportunities against the growing risks in its production and export markets. With $121 million in 2012 revenues, VP Group has grown rapidly in recent years by expanding its vegetable and flower production beyond Kenya into Ethiopia and Ghana; exploring new products such as sugar; and vertically integrating by bringing marketing and logistics operations in-house. The company's leadership is excited about future growth opportunities but also concerned about the impact of VP Group's growth on its entrepreneurial culture. The company also faces increasing cost pressures due to rising costs in Kenya and flat prices in U.K. supermarkets, its main buyers. VP Group's size, vertical integration, and focus on sustainability leave it well positioned as a long-term partner to U.K. supermarkets, but changes to the overall operating environment might require the company to rethink its strategy.
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