Kenya Cooperative Creameries
Strategic Concepts & Mechanics
Primary Evidence
"The sales successes soon forced even the large farmers’ dairies to cooperate with Kenya Cooperative Creameries. What particularly influenced them was that Douglas Draffan, with the support of Tetra Pak, had managed to convince the colonial administration of the positive effects on public health that would be achieved if mandatory school milk was introduced. When it was decided that the school milk could only be served in tetra packs, it effectively meant that dairies without the tetra method were excluded from competing for the orders. In other words, the large farmers no longer had a choice. If they wanted to be on the market, they simply had to open the door for cooperation with the previously so despised cooperative dairy."
"Douglas Draffan had a few years earlier built up Kenya Cooperative Creameries. The initiative for the cooperative dairy had been taken by the British colonial administration. The background was that highlands’ British-born large farmers dominated the dairies. They effectively prevented Kenyan smaller farms from using them. The governor and his administration realized the problem and wanted the small Kenyan villages to have the opportunity to compete for the milk and thus get a chance to strengthen their economy. Therefore, they launched Kenya Cooperative Creameries with the Briton Draffan as CEO."
"Tetra Pak became a success in Kenya. For Kenya Cooperative Creameries, the introduction of the Tetra method meant that milk sales increased by seventeen percent – that much had the milk been diluted previously. By effectively preventing the possibilities of cheating, the cooperative earned well beyond the cost increase brought by the packaging change thanks to the increased sales."