Supa Loaf is one of the most successful bread companies in Kenya, though it had a humble beginning in Mombasa. It is part of the Mini Bakeries, a corporate family of bakery businesses whose products range from bread to biscuits.
Supa Loaf sells bread under its namesake Supa Loaf, Butter Toast and Jubilee brands. It makes white and brown bread varieties to cater to different consumer tastes. The company operates bread production plants across the country, with multiple production sites in places like Nairobi, Mombasa and Nakuru.
Supa Loaf sells its bread in Kenya, Uganda and Tanzania. The company has plenty of room to expand its market across the East Africa community.
If you’re looking for the best companies to invest in Kenya, you might be wondering whether you can buy Supa Loaf shares on the Nairobi Securities Exchange (NSE).
Supa Loaf is a private company, so Supa Loaf shares aren’t available on the NSE yet. But that doesn’t mean you can’t invest in Supa Loaf. There are two options you can pursue if you want to invest in this bread company: You can go to the private shares market or invest in NSE companies that do business with Supa Loaf.
How to Buy Supa Loaf Shares
While you can’t buy Supa Loaf shares directly on the NSE yet, you may access the shares on the private capital market. For private companies like Supa Loaf, the shares are usually held by the founders and people close to them, such as family members and friends.
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Private companies also accept outside investors who meet their requirements, and this is the opportunity you could explore if you want to buy Supa Loaf shares. But this type of arrangement can be out of reach of the ordinary investors.
For example, private shares markets usually have minimum investment requirements that can run into millions of shillings. Another problem you may face in the private capital market is exit. Since only a handful of investors participate in the private capital markets, it can be difficult to find a quick buyer for your shares in case you want to exit the investment.
But if you have the millions to invest and can afford to wait a long time to exit your position, consider calling up Supa Loaf to ask if they can sell you shares in the bread company.
How to Invest in Supa Loaf Through the NSE
You don’t have to own Supa Loaf shares directly to benefit from the bread company’s successful business. Supa Loaf does business with many companies, some of which are NSE-listed companies. You can get exposure to Supa Loaf through the shares of NSE companies that supply goods or services to the bread company. The idea is that the profit that Supa Loaf makes flows to these companies.
Here are 7 NSE companies through which investors can get exposure to Supa Loaf:
1. Kenya Power and Lighting Company (KPLC)
Kenya Power supplies electricity to households, businesses and factories. It dominates the electricity distribution market in Kenya. The electricity that powers Supa Loaf plants and offices come from Kenya Power.
You can expect that Supa Loaf writes fat cheques to Kenya Power each month for electricity use.
Kenya Power shares are listed on the NSE under the “KPLC” ticker code.
2. Unga Group (UNGA)
Unga Group runs wheat and maize milling operations. It is the company behind Jogoo, Hodari, Exe, Hostess and Famila four brands.
Wheat flour is a central ingredient in bread production. Unga Group is one of the leading suppliers of wheat flour, selling to both household and industrial customers.
Supa Loaf doesn’t publish its list of flour suppliers. But considering Unga Group’s massive scale and strong brand in the flour milling business, it is reasonable to believe that it could be one of Supa Loaf’s wheat flour suppliers.
Unga Group shares trade on the NSE under the “UNGA” ticker code.
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3. Total Kenya (TOTL)
Total Kenya operates fuel stations and sells engine oils and other products. The company also supplies fuel to third-party fuel station operators. Therefore, it has a strong presence in Kenya’s fuel market.
Supa Loaf operates a large fleet of delivery trucks that distribute its bread to shops, supermarkets and other demand points. It also has a large number of cars assigned to company managers.
You can expect that a large number of Supa Loaf vehicles refuel at Total stations and other fuel stations that get their supplies from Total. As a result, a large portion of the bread company’s fuel spending goes to Total.
Total shares trade on the NSE under the “TOTL” ticker symbol.
4. Crown Paints (CRWN)
Crown Paints manufactures paints for various applications. Its product range includes construction and auto paints.
Supa Loaf is a heavy consumer of paint products. Its delivery trucks and cars are branded in line with its product range. It uses paints in the vehicle branding process.
Additionally, the company uses paints on its buildings and a range of other surfaces in and outside its factories. For example, you may have seen perimeter walls and bus stops with Supa Loaf branding.
Considering Crown Paints’ large footprint in the paints market, there is a good chance that it supplies the paints that Supa Loaf uses in its branding and decoration projects.
Crown Paints shares are listed on the NSE under the “CRWN” ticker code.
5. Sameer Africa (SMER)
Sameer Africa sells tyres for nearly all types of vehicles. It is the company behind the Yana tyres brand. Supa Loaf is a heavy consumer of tyres for its fleet of vehicles. For products like tyres, they wear out and get replaced. As a result, Supa Loaf has a recurring expenditure for tyres.
There is a good chance that Supa Loaf obtains its tyres from Sameer Africa. As a result, a large chunk of the money that the bread company makes goes to Sameer Africa for tyre purchases.
Sameer Africa shares trade on the NSE under the “SMER” ticker code.
6. Eveready East Africa (EVRD)
Eveready sells batteries for various applications. For example, the company supplies batteries used in vehicles. Eveready also sells lightbulbs.
Supa Loaf buys many batteries for its fleet of delivery trucks and cars. The company also uses lightbulbs in its manufacturing plants, offices and compounds.
There is a good chance that Supa Loaf obtains some of its batteries and lightbulbs from Eveready.
Eveready stock is listed on the NSE under the “EVRD” ticker symbol.
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7. Safaricom (SCOM)
Safaricom is the leading mobile service provider in Kenya. The company also operates the ubiquitous mobile money platform Mpesa.
If you check Supa Loaf’s communication lines, you’ll notice that it operates on both Airtel and Safaricom lines. Mpesa also forms part of Supa Loaf’s payment platforms. As a result, you can expect that Safaricom makes money from Supa Loaf.
Safaricom shares trade under the “SCOM” ticker code on the NSE.
In conclusion, you could buy Supa Loaf shares through the private capital market. But you may need millions of shillings to get started. Moreover, it could take you a long time to sell your shares if you want to exit the investment. The easiest way for ordinary investors to get exposure to Supa Loaf’s successful bread business is buying shares in NSE companies that make money from Supa Loaf.
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