The Entrepreneur

Tree Top’s Journey: Bernard Njoroge’s Rise, Fall, and Lessons

“I went from working at a multinational where there was always enough money to constantly fighting for working capital. It’s a different world when you’re an entrepreneur,” explained,Benard Njoroge.

Published

on

"Entrepreneurship is all about persistence. I burned my fingers a few times, but I learned that you need to be patient and resilient," says Benard Njoroge.

In 2014, Bernard Njoroge made a bold decision that would reshape his life and career. After 17 years working with beverage multinationals like Coca-Cola and Del Monte, where his last role was director of sales and marketing for sub-Saharan Africa, Njoroge resigned from his $10,000-a-month position. His mission? To revive Tree Top, a beloved Kenyan juice brand that had been off shelves for nearly two decades. Today, Njoroge heads Sky Foods, the manufacturer of Tree Top, but the company is now in financial turmoil. With debts mounting and production pressures overwhelming the business, Sky Foods was placed under administration in September 2024.

Why Walk Away from a Dream Job?

“I looked at the value I was building for other people, and I realized I didn’t even have a 1% shareholding. I had helped build Del Monte’s business in Kenya from scratch, growing its turnover to several million dollars a year, but I had no stake in that success,” Njoroge explained. “So I figured, why not start building value for myself? I knew I was leaving a high-paying job, but I also knew that whatever I built next would be mine.”

Despite the uncertainty of entrepreneurship, Njoroge’s conviction led him to acquire the Tree Top trademark from Unilever in 2011. He saw potential in a product that still resonated with many Kenyan consumers, especially those who grew up in the 70s and 80s. “Treetop was not just a drink—it was part of our childhood. People remembered it fondly,” he said.

A Familiar Brand with Nostalgic Power

Instead of creating a new brand from scratch, Njoroge opted to breathe new life into Tree Top. “When I was at Del Monte, every time we conducted focus groups, people would mention Tree Top. That’s when I started thinking about acquiring the brand,” he recalled. Although he approached over ten financial institutions, raising the $2 million he needed to restart the business took nearly two years.

When TreeTop hit the shelves in 2015, it came in both ready-to-drink and dilute-to-taste formats, with five different flavors and a variety of packaging sizes. Njoroge made the necessary changes to appeal to modern consumers, such as switching from glass to plastic bottles. He even sourced fruits locally for some flavors, like mango, while importing other concentrates from Germany.

However, Tree Top’s biggest advantage was the deep emotional connection it still had with consumers. “There’s a lot of nostalgia around the brand. It’s like bringing back a piece of people’s childhood,” Njoroge said. But despite this, many doubted whether it could compete in a market now dominated by newer, more innovative brands like Quencher.

The Struggles of Scaling Production

The journey, however, was not without challenges. Sky Foods had the capacity to produce 2,000 bottles an hour, but market demand was closer to 10,000 bottles an hour. While the company received inquiries from regional markets like Uganda and Tanzania, capital constraints hampered expansion. “We had the demand, but we didn’t have the resources to match it,” Njoroge said.

By 2022, Sky Foods had accumulated more than $4.5 million (about Sh600 million) in debt. Despite the overwhelming demand for Tree Top, the company struggled to secure additional financing. “I went from working at a multinational where there was always enough money to constantly fighting for working capital. It’s a different world when you’re an entrepreneur,” he explained.

Building the Business with Farmers and Retailers

One of the things Njoroge takes pride in is his ability to create local supply chains. Each month, Sky Foods would buy around 70 drums of mango puree from Kenyan farmers, directly benefiting 3,000 local producers. “Imagine what we could do in 10 years if we could scale,” he said. Unfortunately, financial pressures hindered this potential growth.

Tax policies and regulations also presented challenges. “The tax requirements in Kenya are tough on new manufacturers. There should be more measures to support us,” Njoroge noted.

Lessons from Past Ventures

Sky Foods wasn’t Njoroge’s first entrepreneurial venture. His earlier businesses, including African Garden Limited, which processed pickled gherkins, and a sun-dried tomato company, both failed. However, these setbacks taught him valuable lessons. “Entrepreneurship is all about persistence. I burned my fingers a few times, but I learned that you need to be patient and resilient,” he said.

The Future of Tree Top

Despite Sky Foods entering administration, Njoroge remains optimistic about the beverage industry in Kenya. He still believes in the potential of Tree Top and is excited about the prospects in ready-to-drink juices, which he predicts will drive future growth. “The juice market will double in size in the next five years. We don’t have enough innovation yet—there’s room for smoothies, fortified juices, and more premium options,” he said.

While the company may have collapsed under financial pressures, Njoroge’s belief in the brand and the industry remains unshaken. “The demand is there, the opportunities are endless—it’s about finding the right way to harness them.”

Entrepreneurial Advice

For those considering a leap from corporate life to entrepreneurship, Njoroge’s advice is simple: “Be patient, roll with the punches, and build a good team around you. The transition is not easy. You go from focusing on one area to worrying about everything from financing to regulations. But, if you stick with it, the rewards can be worth it.”

Tree Top’s fate may be uncertain, but one thing is clear: Bernard Njoroge’s entrepreneurial spirit and resilience will continue to shape his future ventures. “There’s always hope in business,” he said. “You just need to keep going.”

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending

Exit mobile version