Lato Milk broadens beverage portfolio with Lato Frutish launch

UGANDA – To diversify its beverage offerings, Ugandan dairy producer Lato Milk has introduced Lato Frutish, a powdered fruit-flavored drink. 

Available in apple, mango, and strawberry flavors, Lato Frutish aims to provide consumers with a convenient and refreshing beverage option. This new product complements Lato’s existing range, which includes liquid milk, fortified and powdered milk, fruit yogurt, butter, and instant porridge.

Expansion amidst regional trade challenges

Established in 2013 in Mbarara, Uganda, Lato Milk initially focused on milk powder production for children aged 3 to 12. 

By 2015, the company had expanded its reach to the Democratic Republic of Congo, Egypt, Kenya, and Tanzania, and later to Burundi in 2018. 

Despite its growth, Lato has faced trade barriers within the East African Community (EAC). Countries like Tanzania have imposed tariffs on dairy imports from Rwanda, while Rwanda and Kenya have previously restricted Ugandan milk imports. 

These challenges have prompted Lato to explore new markets and diversify its product line to mitigate the impact of regional protectionism.

Investments and acquisitions

Lato’s parent company, Pearl Dairy Farms Limited, a subsidiary of Mauritius-based Maziwa, employs over 2,000 people. 

In March 2024, Pearl Dairy expanded its operations by acquiring Highland Creamers and Food, a Kenyan dairy company, to strengthen its presence in West Kenya. 

This acquisition aligns with Pearl Dairy’s strategy to enhance its footprint in the region and navigate trade restrictions affecting its products.

In July 2024, Pearl Dairy secured US$35 million in debt financing from the International Finance Corporation (IFC) and the Dutch development bank FMO. This investment is designated for upgrading and increasing the capacity of its powdered milk plant in Uganda and acquiring a packing facility in Kenya. 

These enhancements are expected to improve the company’s supply chain efficiency and product availability across East Africa.