The project seeks to establish a portfolio of sustainable consumer brands across two commodity sectors for the benefit of commodity producers. For that, the CFC provides funds to Windward Strategic Ltd. who will create value-adding consumer brands for the commodities i.e. sugar, pineapple, coffee and chillies which will then be commercially marketed under approved licensing agreements. The CFC investment is directed towards sugar and pineapple value chain. Windward will invest in intellectual property that adds value to primary commodities (“brands”) and provide licenses to commercial partners with existing supply chains and product expertise. A share of the added value from branding sugar and pineapple will be channelled to small farmers and other involved labourers.
The project is financially and technically supported by the Shell Foundation as part of their mission to establish sustainable enterprise-based solutions to development problems. While CFC funds will be provided as a grant. In return, a percentage of all incurred licensing fees will be returned to CFC covering at least four years period to fully recover the committed resources.
The project is operational since November 2013. While the project was successful to win one of the world’s biggest sugar traders as a powerful commercial partner for distribution and marketing of the sugar brand, the development of the brand and the negotiation of a licensing contract conditions took longer than expected. Finalization of negotiations is underway and it is expected that the sugar trader will meet the obligations and pay a licensing fee for every ton of sugar marketed through the new brand. This licensing fee will be distributed between the sugar producing farmers, Windward and the CFC.
Efforts to create a pineapple brand, however, were discontinued due to a very difficult market environment and technical difficulties witnessed within the initially selected pineapple producing partner company. It was therefore decided to reallocate the earmarked funds for pineapples towards the chilli brand development of the programme. The chili brand has been fully developed and the company Netrade has taken up the license and introduced it into the Zimbabwean market in February 2015. The chilli sauce instantly became a market leader and a significant number of beneficiary smallholder chilli producers are expected to actively participate after a recovery in Zimbabwean economy.
|Submitting Institution:||Windward Strategic Ltd.||Project:||CFC/2012/01/0044|
|Country:||Malawi, Zimbabwe, Mozambique, India and other ACP Countries||Commodity:||Pineapple etc.|
|Total Cost:||USD 1,600,000||CFC Financing:||USD 475,000 (Grant of which USD 230,000 is financed by OPEC Fund for International Development (OFID))|