Chronicle Editor
Business Writer
AN emerging Bulawayo confectionaries firm – Mr Sinkwa has partnered with a leading bread maker on a toll manufacturing arrangement as it prepares to launch a new range of products- Mrs Sinkwa.
Mr Sinkwa, a locally owned firm, hit the market in December last year.
Sales Manager, Mr Ray Nthabeleng Makwaiba said once established in the market the idea is to set up a bakery in the long run.
“We have a toll manufacturing arrangement with another bread maker to produce our unique brand of the product, which is bread. We supply the firm with our recipe. We are overwhelmed by the response that the Bulawayo community has given us. We underestimated the movement and acceptance from the market.”
Toll manufacturing or tolling is outsourcing all the production or part of it to a third-party company where you provide all the raw materials or semi-finished products. The work of the third-party company is to process the products or raw materials to the required specifications.
The manufacturer receives a fee or toll, a flat fee agreed upon before the commencement of processing. They are only responsible for the final product’s quality as far as the processing is concerned.
The source company is responsible for the quality of materials and the vendors. The main reason for toll manufacturing is to utilise specialised equipment and labor or technicalities in the production process.
Mr Makwaiba said the firm is taking advantage of local gaps and opportunities in the bread market.
He added that to coincide with Valentine’s Day tomorrow, they are launching Mrs Sinkwa.
“The whole idea behind Mrs Sinkwa is to use the product to advance our social corporate responsibility. For every loaf of bread brought, a certain percentage will be set aside to support cancer initiatives for women.”
He added that they periodically distribute bread to school children.
Online Reporter