Over the past two decades, Kenya has witnessed a fascinating evolution in unconventional retail trends. The pioneering practice of milk dispensing machines, prominence of water dispensers to the emergence of cooking oil vending and Bio-fuel ATM. At the risk of not being caught off-foot, where do consumer brands go from here?

Let's delve into the origins of these trends. The concept of automated cash systems, initially introduced by Barclays Bank in 1967 as DACS (De La Rue Automatic Cash System), gained traction in the 1970s, propelled by iconic campaigns like Citi Bank's "The citi never sleeps." In Kenya, Standard Chartered Moniepoint led the charge in the late 1980s, paving the way for widespread adoption in the 1990s. Fast forward to 2005, and the realm of self-service and automation expanded into the realm of consumer goods with the introduction of Milk ATMs.

Today, Consumer ATMs are becoming ubiquitous fixtures, offering unparalleled convenience and perceived safety compared to traditional channels of measuring jugs. However, the driving forces behind their popularity extend beyond mere convenience. Affordability and the ability to purchase goods in smaller quantities have emerged as pivotal factors, with consumer sentiment reflecting a preference for these attributes over packaged products.

Notably, concerns about product quality and cleanliness have been raised, underscoring the importance of robust branding strategies to instill trust in consumers in the refilling practice. It's worth noting that New KCC, a key player in the milk market, has previously ventured into the Milk ATM segment, while there have been scanty details on why they stopped branding to shape consumer perceptions.

In contrast to the dairy, the landscape of the cooking oil industry presents a different narrative, largely dominated by finite consumer goods companies. The ability of small-scale player to have any influence is non-existent, this was demonstrated by the government efforts in 2023. However, there are exceptions to the development of refilling infrastructure, such as KOKO, which supplies Bioethanol fuel to a vast network of outlets.

The recent discussions surrounding refill practices within this sector have ignited a broader conversation on sustainability and environmental responsibility. Global leaders in the industry are actively testing refill models across various markets, with Coca-Cola, for instance, committing to significant adoption by 2025. On the hand Unilever is testing with several modern trade stores across 11 markets like the smart fill practice in India.

In the context of Kenya, several pertinent questions arise:

1. How does the adoption of refill practices impact brand perception and consumer trust, particularly in light of concerns about product quality and cleanliness?
2. What are the challenges and opportunities associated with integrating refill stations into existing retail spaces, considering potential space constraints and logistical considerations?
3. Beyond the sustainability benefits, what additional advantages do refill practices offer over traditional packaged products, particularly in terms of cost-effectiveness and consumer convenience?

Addressing the first question, New KCC's extensive experience positions them as a valuable source of insights into the branding implications of refill practices. Additionally, understanding consumer perceptions and preferences is essential in navigating this transition effectively.

Regarding the second question, the successful integration of refill stations into retail spaces hinges on collaboration between consumer goods companies, retailers, and shoppers’ practices. While significant stride has been made in areas such as milk and cereals, it will be exciting to see what opportunities do exist in household care and beauty products. By optimizing space utilization and leveraging innovative design solutions, retailers could create seamless and efficient refill experiences for consumers.

Lastly, in response to the third question, refill practices offer multifaceted advantages beyond sustainability, including cost savings for consumers and enhanced convenience through the ability to purchase goods in customizable quantities. In UK, customers have stated there are more likely to explore refill because of the value for money offered.

In conclusion, Kenya's retail landscape continues to evolve, driven by innovations that prioritize consumer convenience and affordability. Embracing refill practices not only addresses pressing environmental concerns but also presents unique opportunities for brands to enhance consumer trust and loyalty. By fostering collaboration and innovation across the industry, stakeholders can collectively shape a more sustainable and consumer-centric retail ecosystem for the future. Nonetheless, initiatives like grab & go packs and dilute at home pose questions to the refill movement's core principles. Nevertheless, affordability and convenience remain pivotal factors in shaping consumer preferences. With that said, what are we taking the refill station this year?