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Procter & Gamble has consolidated the local detergents market firmly under its grip warding off longtime archrival Unilever by controlling 40 per cent of the sector.

Data from the Competition Authority of Kenya shows that the American multinational commands the local detergents market with its Ariel brand, as Unilever’s Omo plays the second fiddle.

“Market share data collected by the authority indicates that Procter and Gamble is the major player with a market share of 40 per cent followed by Unilever with 20 per cent,” said CAK data.

The regulator noted that international brands enjoy a strong brand heritage and operate through well-elaborated distribution channels, thus enhancing product visibility and availability.

This has seen local brands like Bidco, Kapa, and Pwani Oil among others fight to widen their share of the market. Pwani has finalised the acquisition of Rainbow Washing powder from Match Master Limited.

“The proposed transaction involves the acquisition of certain assets of Match Masters Limited, including plant and machinery, relating to the repackaging and distribution of the washing powder business, by Pwani Oil Products Limited,” said CAK.

The deal which started in 2018 has seen the manufacturer of cooking oil and fats enter the detergent industry in its diversification plan amid increased demand for detergent products following the onset of Covid-19 that saw personal hygiene highly emphasized.

Targeting homecare products

“We are not acquiring the company but just a brand of detergent powder called Rainbow from them. It is an entry for Pwani into the mass market powder detergent market. Completion is already done,” Pwani CEO Rajul Malde told the Business Hub.

The CEO however declined to disclose the estimated cost of the acquisition.

Match Masters employees will be absorbed by the acquirer to avoid employment losses. The transaction also involves the acquisition of certain assets of Match Masters Limited, including plant and machinery, relating to the repackaging and distribution of the washing powder business.

“The transaction was unlikely to lead to any negative public interest issues. Based on the foregoing, the authority approved the acquisition of certain assets of Match Masters Limited by Pwani Oil Products Limited unconditionally,” CAK said in a statement.

The firm is therefore expected to build on the 1 per cent market share of the detergent industry that Match Masters commanded.

Pwani Oil has been on an acquisition drive, taking over the Ushindi Soap brand to boost its presence in the fast-growing personal and home care products category. Bidco has also launched numerous products as it targets different market segments in what appears to be a tight market share war with several local and foreign players.

Demand for these products has increased over the years occasioning increased investment in manufacturing companies.

“Demand was enhanced during the peak of the COVID-19 pandemic when personal hygiene was emphasized,” the regulator said. P&G reentered the market in 2009 having left in the 1990s after a fierce market share war with Unilever.

To protect its market share from a more determined P&G given its huge publicity budget, Unilever lowered the prices of Omo in an attempt to shake off the challenge only to see promoters of Ariel take similar action.

Procter & Gamble had in the past come under fire from Unilever Kenya for allegedly running a “misleading and non-factual” advertising campaign that pitted Omo against Ariel.

The company that makes Omo washing powder, Unilever, was upset about a Procter & Gamble advertisement that touts Ariel as the best stain-removing detergent for one wash during prime time television.