Currently, Mpanga Growers Tea Factory Company Limited has three broad categories of market outlets, namely the Mombasa Auction, Fair trade, and the local market.
The Mombasa Auction, which is a tea trading house in the East African region, takes up to 98% of total sales of our teas.
Mpanga being Fair-trade affiliate sells some of her teas to fair trade buyers, which accounts for 1.6% of the total sales. Teas sold on fair trade market carry a premium which goes towards the improvement of unprivileged social economic well being of the local community within the Company tea growing areas.
The local market accounts for 0.4% of sales the total sales. Mpanga is considering increasing its share of the local market by introducing blended packed tea for domestic consumption.
Mpanga has two distribution channels: direct sales and auction warehousing, both of which are centrally managed.
Direct sales – this is the channel that sales to the local market basically to satisfy the local community. The buyers pick up their products from the company’s store. The factory can also provide samples for various grades before deciding on sales with the buyer.
Auction Warehousing – this is through contact with our brokers (Venus Tea Brokers Ltd). This can be done through Mombasa auction and a private sale outside the auction market. This means that the sales are therefore FOB Mombasa. Mpanga pays for warehousing and all other auction charges (cataloging, fees, freight, insurance, etc).